Discussion Questions and Critical Thinking/Ethical Case-3

1.Explain the concept of the accounting cycle.

2.An accounting period is based on the balance sheet. Agree or disagree.

3.Compare and contrast a calendar year versus a fiscal year.

4.What are interim reports?

5.Why is the ledger called the book of final entry?

6.How do transactions get "linked" in a general journal?

7.What is the relationship of the chart of accounts to the general journal?

8.What is a compound journal entry?

9.Posting means updating the journal. Agree or disagree. Please comment.

10.The side that decreases an account is the normal balance. True or false?

11.The PR column of a general journal is the last item to be filled in during the posting process. Agree or disagree.

12.Discuss the concept of cross-referencing.

13.What is the difference between a transposition and a slide?

Jay Simons, the accountant of See Co., wants to buy a new software package to manage his general ledger but can't because all funds have been allocated for the rest of the fiscal period. Jay decides to call his friend at Joor Industries to ask if he can copy its software. What do you think about Jay's decision?