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Preview File Edit View Go Tools Window Help G 9 B ) 99% C2 C Tue Jun 16 944 PML Q E B DSC_0534.JPG (20 documents, 20 total pages) D Q Qd 75 DSC 0534.JPG Discussion Questions 1. What is he difference between e cash basis and the accrual 13. What are the steps in recording closing entries? basis of accounting 14. What accounts are affected by closing entries? What accounts 2. O Why is the accrual basis of accou ing generally preferred are not affected? over the cash basis? 15. O what two purposes are accomplished by recording closing 3. What type of business is most likely to select a fiscal year that core entries' responds to its natural business year instead of the calendar . year16. What is the purpose of the Income Summary account losing 4. What is a prepaid expense and where is reported in the finan 17. O Explain whether an error has occurred if a post tements? trial balance includes a Depreciation Expense O What type of assets require adjus ing entries to record 18.What tasks are aided by a work sheet depreciation 19. and Adjustment Why are the debit credit entries in the 6. O what contra account is used when recording and reporting columns of sheet identified the work with letters? the effects of depreciation? Why is it used? 20. What is a company's operating cycle? 7. Assume Piaggio has unearned revenue . PIAGGIO 21. What classes of assets and liabilities are shown on a typical is unearned revenue and where is classified balance sheet? ported in financial statements 22. How is unearned revenue classified on the balance she 8. What is an accrued revenue? Give an example. 23. What are the characteristics of plant assets 9.A If a company ini ially records prepaid expenses with debits to expense accounts, what type of account is debited in the 24. How do reversing entries simplify recordkeeping? adjusting entries for those prepaid expenses? 25 . If a company recorded accrued salaries expense of $500 at 10. O Review the balance sheet of Polaris in the end of its fiscal year, what reversing entry could be made ? Polaris Appendix A. Identify one asset account that re. When would it be made ? quires adjustment before annual financial statements can be 26. oRefer to the most recent balance sheet for prepared. What would be the effect on the income statement if Polaris in Appendix A. What five main noncur Polaris this asset account were not adjusted? (Number not required, rent asset categories are used on its classified balance sheet? but comment on over- or understating of ne income. 27. Refer to sheet KTM's most recent balance in run 11. O Review the balance sheet of Arctic Cat Appendix A. Identify and list its 7 current assets. Appendix A. Identify the amount for property and Arctic Cat 28. O Refer to Arctic Cat's most recent balance equipmentWhat adjusting entry is necessary (no numbers re sheet in Appendix A. Identify the three accounts Arctic Cat quired) for this accoun when preparing financial statement listed as current liabilities 12. O Refer to KTMs balance sheet in Appendix A. If it made an adjustment for unpaid wages at year KTM PIAGGIO end, where would the accrued wages be reported on balance DSC_0535.JPG 29. O Refer to Piaggio's financial statements in placGlo Appendix A. journal entry was likely re What corded as of December 31, 2011, to close its Income Summary account
