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Problem 1: Which of the following statements is incorrect?
a. Each account has an account title, a debit side and a credit side.
b. An account is a sorting device that is used to summarize the changes in the balance of each accounting element.
c. Only balance sheet accounts can be found in the ledger.
d. The accounts in the general ledger are usually arranged in the same order that they are presented in the trial balance.
Problem 2: Which of the following events is not recorded in the accounting records?
a. Equipment purchased on account.
b. An employee is terminated.
c. A cash investment is made into the business.
d. Customers returned damage goods bought from your company.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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