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Problem 1: Financial statements are typically prepared in the following order:
Multiple Choice
A. Balance sheet, statement of owner's equity, income statement.B. Statement of owner's equity, balance sheet, income statement.C. Income statement, balance sheet, statement of owner's equity.D. Income statement, statement of owner's equity, balance sheet.E. Balance sheet, income statement, statement of owner's equity.
Problem 2: When closing entries are made:
A. All ledger accounts are closed to start the new accounting period.B. All temporary accounts are closed but permanent accounts are not closed.C. All asset accounts are closed but liability accounts are not closed.D. All permanent accounts are closed but temporary accounts are not closed.E. All balance sheet accounts are closed.
Identify the steps of the accounting cycle and provide a description of each step and what role does each step play in the success of a business?
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Which product has the largest unit contribution margin? Why wouldn't this product be the most profitable use of the constrained resource in either case?
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