Question

• Identify the three types of services performed by certified public accountants (CPAs).
• How does the double-entry system reduce the chances of mistakes or fraud in accounting?
• What are the three basic financial statements, and what major information does each contain?
• Explain the ways in which financial accounting differs from managerial (management) accounting.

Part II (Application):

• Dasar Co. reports the following data in its September 30 financial statements:
  • Gross sales: $225,000
  • Current assets: $40,000
  • Long-term assets: $100,000
  • Current liabilities: $16,000
  • Long-term liabilities: $44,000
  • Owners' equity: $80,000
  • Net income: $7,200
• Using Dasar's financial statements, compute the following ratios:
  • Current ratio
  • Debt-to-equity ratio
  • Return on owner's equity
  • Identify the three types of services performed by certified public accountants (CPAs).
  • How does the double-entry system reduce the chances of mistakes or fraud in accounting?
  • What are the three basic financial statements, and what major information does each contain?
  • Explain the ways in which financial accounting differs from managerial (management) accounting.

  • Part II (Application):

  • Dasar Co. reports the following data in its September 30 financial statements:
    • Gross sales: $225,000
    • Current assets: $40,000
    • Long-term assets: $100,000
    • Current liabilities: $16,000
    • Long-term liabilities: $44,000
    • Owners' equity: $80,000
    • Net income: $7,200
  • Using Dasar's financial statements, compute the following ratios:
    • Current ratio
    • Debt-to-equity ratio
    • Return on owner's equity

Answer 1

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