Question 1

Provide a response to the following relating to accounting for retail.

a)When constructing an income statement for a company using the periodic inventory system, how is the cost of net sales calculated?

b)What are two differing characteristics between the perpetual and periodic inventory systems?

c)Stae and explain the difference between a (1) settlement (cash) discount and (2) trade discount when selling to a customer?

d)What is the impact if an accountant records a return of goods as debit, sales as opposed to debit sales returns and allowances?

Question 2

Two independent situations are described below

1.The owner of the business included his personal dental expenses in the entity's income statement.

2.Depreciation expense was not recorded because to do so would result in a loss for the period.

Required:

Indicate for each situation the accounting principle(s) or reporting characteristics (if any) that are violated. Provide a description for each of the two situations mentioned above.

Q3)' In a system which uses several special journals, it is not necessary to have a general journal'. Do you agree? Explain by providing 5 examples.

Q4)Outline 3 differences in the closing entry process between a sole trader and a private company

Q5)Discuss and explain 5 differences between accrued and deferred adjusting entries.

Q6)List 4 defining characteristics of social accounting

Q7)Referring to the sustainable development goals, provide 2 examples, and explain how a corporation can use social accounting to discharge its accountability towards its social and environmental impact.