Question

1. Know the steps in preparing a worksheet and the uses of a worksheet 2. Know...


1. Know the steps in preparing a worksheet and the uses of a worksheet
2. Know which accounts are closed to the Income Summary& what the income summary is used for
3. Know what the purpose of the post-closing trial balance is & when it is prepared
4. Know what a current asset is
5. Know what an intangible asset is
6. Know how/when closing entries are prepared
7. Know which accounts are credited when goods are returned
8. Know what a sales discount is and when it is offered
9. Know how/when sales returns and allowances are increased/decreased
10. Know the difference between FOB shipping point and FOB destination
11. Know the flow of costs in a perpetual inventory system
12. Know how net income is calculated
13. Understand credit terms and what they mean
14. Know IFRS requirements for the income statement
15. Know how the inventory system works under IFRS
16. Know the income statement effects for inventory (overstated/understated)
17. Know what conservatism is
18. Know when the specific identification method of costing is used
19. Understand cost flow methods and when/how they are adopted
20. Know how to compute cost of goods sold
21. Know what should be included in physical inventory
Business   Accounting   
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Answer #1

1. Worksheet is prepared by the accountant in order to the necessary information regarding the adjusting entries and financial statement.

It is used to in the preparation of financial statement of the company before the journal entries are maintained.

2. Accounts that are closed to the income summary are:

a) Revenue

b) Expense

c) Dividend

Income summary is used for recording closing entry at the end of accounting period.

3. The purpose of post closing trial balance is to show the accounts that have the balances of zero. It shows helps to tally the debit and credit balance.

The post closing trial balance is prepared after the closing entries are made and posted to ledger account.

4. Current asset is the asset that is expected to be used or sold within an year. It includes cash, cash equivalent, stock inventory, accounts receivable etc.

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