Reference no: EM132555323

Problem 1: What are several examples of internal management, management prepared information that ordinarily would not be communicated externally? Why?

Problem 2: Why is knowledge of accounting terms and concepts useful to persons other than professional accountants?

Problem 3: What is the definition of Internal Controls, and what are the five components of COSO's internal control framework?

Problem 4: What is the basic accounting equation? Briefly define the three primary elements in the equation and examples of each.

Problem 5: When do accountants consider revenue to be realized? What basic question about recording revenue in accounting records is answered by the Realization Principle? Would our answer to the timing of recognizing revenue differ it the business is on the accrual basis of accounting versus the cash basis of accounting?

Problem 6: How do dividends affect the balance sheet? Are they treated as a business expense? Explain?

Problem 7: Why does the recording of adjusting entries require a better understanding of the concepts of accrual accounting than does the recording of routine revenue and expense transactions occurring throughout the period?

Problem 8: Briefly explain the concept of materiality? If an item is not material, how is the item treated for financial reporting purposes?

Problem 9: Prepare a fictitious balance sheet, statement of retained earnings, and income statement of a business. This fictitious business is located in the North Pole and manufactures toys and sells them to retail outlets such as Wal Mart and Toys R Us.