assignment

1. Describe what a company's cost of goods sold is and where the value comes from. What is gross profit for a merchandise company? 2. Explian why use of the perpetual system has grown dramatically. 3. Define Accounting cycle in detail. 4. Daniel is having trouble determining whether withdrawals. Owner's capital, interest income, and prepaid insurance are temporary or permanent accounts. Explain to him the difference between a temporary and a permanent account in accounting and classify the accounts into each category. 5. Why is classified balance sheet more useful to financial statements users than a non-classified balance sheet? 6. Define perpetual and periodic inventory system. 7. After reviewing the financial statements, the marketing department will finalize its decision on launching a new advertising campaign and the human resources department will finalize how many employees to hire. The accounting department is very busy and has decided not to post the year-end adjusting entries. What are the potential consequences of not posting adjusting entries