Questions - Short answers only:

1: Compare and Contrast Perpetual and Periodic Inventory Systems. Which do you think provides the most accurate inventory data?

2: Describe a Classified Income Statement. Include a description of the calculations on the statement. Why are the calculations important?

3: Choose one the inventory valuation methods (FIFO, LIFO or weighted average). Describe how the method is used to value inventory and its effect on cost of goods sold and ending inventory.

4: Describe a Bank Reconciliation. Why is a bank reconciliation and important internal control?

5: Describe how a business accounts for the purchase of a building. What is depreciation? Describe how depreciation is calculated.

6: What is retained earning?

7: Describe how and why a company issues stock. Try to include at least 5 of the terms discussed in the text.