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Question: In your post, comment on the following:
1. In regard to the closing process, why are closing entries necessary and what impact would it have on the following accounting period if the closing entries were not recorded and posted?
2. Why is it necessary to prepare financial statements even though all the business transactions have been recorded in the journal, posted in accounts and stored in its accounting system? Are financial statement more useful than the journal and ledger? Explain.
3. What is the difference between an income statement and balance sheet?
4. Briefly explain the reason it helpful to understand the interconnectivity and relationship between each individual financial statements?
Video: Closing Entries (By Edspira)
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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