西方财务会计简答题演示教学.doc

西方财务会计简答题 精品文档 精品文档 收集于网络，如有侵权请联系管理员删除 收集于网络，如有侵权请联系管理员删除 精品文档 收集于网络，如有侵权请联系管理员删除 1. Why are accounting systems called double entry? 2. Explain the link between the income statement and the statement of owner’s equity, the balance sheet and the statement of owner’s equity. 3. How is cost of goods sold computed under a periodic inventory system? 4. What are the normal recording and posting procedures when using special journals and controlling accounts with subsidiary ledgers? 5. Describe the steps in the accounting cycle. Guidance Answers to Quick Checks 1.The name double entry is used because all transactions affect at least two accounts. There must be at least one debit in one account and at least one credit in another account. 2.(1) An income statement reports a company’s revenues and expenses along with the resulting net income or loss. A statement of owner’s equity shows changes in euqity, including that from net income or loss. Both statements report transactions occurring over a period of time. (2) The balance sheet describes a company’s financial position (assets, liabilities, and equity) at a point in time. The equity amount in the balance sheet is obtained from the statement of owner’s equity. Under a periodic inventory system, the cost of goods sold is determined at the end of an accounting period by adding the net cost of goods purchased to the beginning inventory and subtracting the ending inventory. The normal recording and posting procedures are threefold. First, transactions are entered in a special journal if applicable. Second, individual amounts are posted to any subsidiary ledger accounts. Third, column totals are posted to general ledger accounts if not already individually posted. 5. step 1 Collecting economic data oneach transaction and analyzing each transaction step2 Journalizing—Original Data Input step3 Posting to Ledger step4 Preparing a Trial Balance step5 Journalizing and Posting step6