Questions -

Suppose your company sold $60,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?

Suppose your company paid $18,000 in cash for its rent. How does this transaction impact the accounting equation?

Suppose your company sold $22,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?

Suppose your company purchased $50,000 in merchandise from a seller for cash. How does this transaction impact the accounting equation?

Suppose your company paid $10,000 in cash for its advertising. How does this transaction impact the accounting equation?

Suppose your company sold $25,000 in merchandise to a customer for credit. How does this transaction impact the accounting equation?

Opportunity is one of the components of the fraud triangle. How can a company reduce opportunity as a fraud risk? Give an example of how someone could use opportunity to commit fraud and how the company could reduce this risk.

Pressure is one of the components of the fraud triangle. What types of pressures do people face that could lead to fraud? Give an example of how pressure could lead to fraud.

Rationalization is one of the components of the fraud triangle. What types of rationalization could a person use to justify misconduct? How can a company protect itself from rationalization as a part of fraud?

What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis?

What is vertical analysis of financial statements? How does vertical analysis differ from horizontal analysis?

How does vertical analysis of financial statements differ from horizontal analysis? Which method do you think is a better analysis tool?

Physical control is a key feature in an internal control system. Why is physical control such an important internal control? Example of physical control as an internal control.

Prenumbered documents are a key feature in an internal control system. Why are prenumbered documents such an important internal control? Example of prenumbered documents as an internal control.

Separation of duties is a key feature in an internal control system. Why is separation of duties such an important internal control? Example of separation of duties as an internal control.

Describe the balance sheet. Why is this statement important to the company, creditors, and investors?

Describe the income statement. Why is this statement important to the company, creditors, and investors?

Describe the statement of cash flows. Why is this statement important to the company, creditors, and investors?