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BIO Q & A for Accounting Principals

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Question;Answer each of the following questions in your own words. Question 1: You are visiting with a friend, Jerry Bidwell, who wants to start a new business.During discussions on forming the business, Jerry makes this statement:"Our business will have accounts receivable and accounts payable. It will also acquire a substantial amount of computers and equipment. Will it be acceptable to use the cash basis of accounting?"Prepare a response for Jerry.Answer here:Question 2: "Adjusting entries are required by the cost principle of accounting." Do you agree with this statement? Explain fully.Question 3: "Depreciation is a valuation process that results in the reporting of the fair value of the asset." Do you agree with this statement? Explain fully.Question 4: Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category. Explain fully.Questions 5: Will an adjusting entry ever affect the asset account called "Cash?" Why or why not? Explain fully.

 

Paper#40238 | Written in 18-Jul-2015

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