西方财务会计简答题

1.Whyareaccountingsystemscalleddoubleentry?2.Explainthelinkbetweentheincomestatementandthestatementofowner’sequity,thebalancesheetandthestatementofowner’sequity.3.Howiscostofgoodssoldcomputedunderaperiodicinventorysystem?4.Whatarethenormalrecordingandpostingprocedureswhenusingspecialjournalsandcontrollingaccountswithsubsidiaryledgers?5.Describethestepsintheaccountingcycle.GuidanceAnswerstoQuickChecks1.Thenamedoubleentryisusedbecausealltransactionsaffectatleasttwoaccounts.Theremustbeatleastonedebitinoneaccountandatleastonecreditinanotheraccount.2.(1)Anincomestatementreportsacompany’srevenuesandexpensesalongwiththeresultingnetincomeorloss.Astatementofowner’sequityshowschangesineuqity,includingthatfromnetincomeorloss.Bothstatementsreporttransactionsoccurringoveraperiodoftime.(2)Thebalancesheetdescribesacompany’sfinancialposition(assets,liabilities,andequity)atapointintime.Theequityamountinthebalancesheetisobtainedfromthestatementofowner’sequity.3.Underaperiodicinventorysystem,thecostofgoodssoldisdeterminedattheendofanaccountingperiodbyaddingthenetcostofgoodspurchasedtothebeginninginventoryandsubtractingtheendinginventory.4.Thenormalrecordingandpostingproceduresarethreefold.First,transactionsareenteredinaspecialjournalifapplicable.Second,individualamountsarepostedtoanysubsidiaryledgeraccounts.Third,columntotalsarepostedtogeneralledgeraccountsifnotalreadyindividuallyposted.5.step1Collectingeconomicdataoneachtransactionandanalyzingeachtransactionstep2Journalizing—OriginalDataInputstep3PostingtoLedgerstep4PreparingaTrialBalancestep5JournalizingandPostingstep6AdjustingEntriesstep7PreparingWorksheetsstep8PreparingtheFinancialStatementstep9MakingClosingEntriesstep10PreparingaPosting-closingTrialBalance