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Questions about the Accounting Profession
Balance Sheet Questions
Income Statements Questions
Adjusting Entry Questions

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Updated 10/2/16
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Questions about the Accounting Profession
What are the top accounting schools
What is a bookkeeper?
What is a certified public accountant?
Can I take the CPA exam with a bachelor's degree?
What is the difference in salaries between a bookkeeper and an accountant?
What is GAAP?
What is IFRS

Balance Sheet Questions
Where is a contract with a customer reported on the balance sheet?
What is an account?
What is a T-account?
Will every transaction affect the incomestatement and a balance sheet account?
Is it possible to have a balance sheet for a single day?
Asset based Questions include subsections on depreciation, inventory, accounts receivable and others.
When should costs be expensed and when should costs be capitalized?
How do you account for the rebate on a automobile?
How do you record the deposit on a utility?
How do you record an asset that was partially financed?
How should the cost of a yearly subscription for a newspaper be recorded?
What is the proper accounting for supplies?
What is a contingent asset?
How is Petty cash reported on financial statements?
Is a prepaid expense recorded initially as an expense?
Why would Prepaid Insurance have a credit balance?
Why is prepaid insurance a short term asset?
What is a deferred-cost?
Is a postdated check considered currency?
Can I capitalize this year's R & D expenditures?

Depreciation
How much do you depreciate an asset and whens?
What is the meaning of systemic and rational allocation?

What is the double declining balance method of depreciation?
How do I calculate depreciation using the sum of the years’ digits?
How do I compute the units of production method of depreciation?
What are the effects of depreciation?
Is it acceptable for companies to use two methods of depreciation?
How many years is the appropriate time for depreciating leasehold improvements?
Inventory
What is inventory change and how is it measured?
What are the reasons for high inventory days?
What is the gross profit method of inventory costiog
If inventory is understated at the end of the year, what is the effect on net income?
How cad I determine the inventory methods used by other companies in my industry?
What is the cost to store inventory?
Accounts Receivable
What is the provision for bad debts?
Why is there a difference in the amounts for Bad Debts Expense and Allowance for Doubtful Accounts?
Why are debt issue costs classified as an asset?

What is the effect on the income statement when the allowance for uncollectible accounts is not established?
What is the meaning of aging?
Other

What is the entry for the down payment received from a signed contract?
What is the entry when merchandise has been received but not the vendor’s invoice?

Where does accrued interest on notes receivable get reported on the balance sheet?

What is the difference between a land improvement and a leasehold improvement?
What is net of accumulated amortization?


Liability/Equity Based Questions
Are utility bills an expense or a liability?
What is the difference between accounts payable and accrued expenses payable?
What is the difference between a note-payable and a bond-payable?
How should an interest only loan be recorded?
Why would a balance sheet current liabilities as a negative-amounts/
Where is a contract with a customer reported on the balance sheet?
What is the deferred revenue?
What is Stock?
What is the difference between stocks and bonds?
What are Sales Taxes?

Where do dividends appear on the financial Statements?
What is disinvestment?

Income Statements Questions
Are sales discounts reported as an expense
What is the accrual basis of accounting?
What is the accounting cycle?
What is the difference between adjusting entries and closing entries?
What is cost incurred?
Why do purchases appear as expenses on an income statement?
What is a deferral?
What is a deferred cost?
What is a deferred expense?

What is interest expense?
What is a bad debt?
What is the difference betwee an -invoice and a statement?
How does an expense affect the balance sheet?
What are reversing entries and why are they used?

Why is depreciation on the income statement different from the depreciation on the balance sheet?
Where does revenue received in advance go on a balance sheet?
What is a deferred credit?
What is the deferred revenue?
Would you please explain unearned income?
Do sales commission get reported in the income statement?
Where should I enter unpaid wages?

What is the difference between unearned revenue and unrecorded revenue?
Is the provision for doubtful debts an operating expense?
Where do preferred stock go on the P&L?


Adjusting Entry Questions(See Asset Questions)
What are adjusting entries?
In adjusting entries, how do I know which T-accounts to use?
Will the adjusting entry amounts appear in the balance sheet and income statement?
What are accruals?
What are accrued expenses and when are they recorded?
What are accrued revenues and when are they recorded?
What is accrued payroll?
Under accrual accounting, how are worker comp premiums handled?

What is not sufficient funds?
How do you calculate accrued vacation pay?
Where is accrued income reported in the balance sheet?
What if an employee’s actual vacation payment is greater than the what was accrued?

How do I record money received for an insurance claim on inventory loss?
What does it meann to reclassify an amount?

 

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Cost Accounting Questions
What is the difference between cost and expense?
What is the difference between a differential cost and an incremental-cost?
what is process costing?
Why are debt issue costs classified as an asset?
Are commissions a cost of goods sold account or an expense?
What is EOQ?

Control Questions
What are separation of duties?
What is meant by reconciling an account?
What does it mean to check the extensions and to foot an invoice?
What is budget variance?
What does favorable budget variance mean?
What is the difference between reserve and provision?
Our income statement shows wide fluctuations in utilities expense from month to month. I suspect our accounting is not proper. Any suggestions?
Reducing the Need for Accruing Expenses
Is Standard Costing GAAP?
What-is-a-learning-curve?
What is a source document?

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Free Finance Book Summary

More Free Accounting Stuff

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Practice Questions & Answers multiple choice

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Accounting Courses


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