Accounting Answers

Explain, using examples, the difference between cash flow statements prepared using the

direct method versus the indirect method.

The following balances appeared in the accounts of Fast Wheels for June:

TOPIC: BANK RECONCILIATION

Directions: Research for the following questions and answer concisely using less than 5 sentences for each response.

1. Why are NFS Checks (not sufficient funds check) considered a debit memo?

2. Is a certified check considered to be an outstanding check?

TOPIC: BANK RECONCILIATION

Directions: Research for the following questions and answer concisely using less than 5 sentences for each response.

1. Why are NFS Checks (not sufficient funds check) considered a debit memo?

2. Is a certified check considered to be an outstanding check?

TOPIC: BANK RECONCILIATION

Directions: Research for the following questions and answer concisely using less than 5 sentences for each response.

1. Why are NFS Checks (not sufficient funds check) considered a debit memo?

2. Is a certified check considered to be an outstanding check?

TOPIC: BANK RECONCILIATION

Directions: Research for the following questions and answer concisely using less than 5 sentences for each response.

1. Why are NFS Checks (not sufficient funds check) considered a debit memo?

2. Is a certified check considered to be an outstanding check?

A. Prepare the Balance Sheet with the given data.

• Accounts Payable - 47,845.00
• Accounts Receivable - 7,050.00
• Equipment and Supplies - 35,500.00
• Cash - 10,000.00
• Equity - 6,035.00
• Retained Earnings - 3,965.00
• Loan Payable - 10,780.00
• Inventory - 16, 075.00

A. Prepare an income statement given the following data:

• Insurance - 250.00
• Sales Revenue - 20,000.00
• Rent - 8,500.00
• Utilities - 750.00
• Payroll - 4,000.00
• Marketing - 2,500.00

A. Compute the missing information to prepare the Balance sheet given the following data.

a. Assets:

• Cash - 7,000.00
• Accounts Receivable - 600.00
• Inventory - 700.00
• Equipment - 1,000.00
• Total assets - ?

b. Liabilities:

• Accounts Payable - 1,900.00
• Loan Payable - ?
• Total Liabilities - 5,400.00

c. Equity:

• Owner's Equity - 2,700.00
• Retained Earnings - 1,200.00
• Total Equity - ?

1. What is the difference between daily tasks and weekly tasks record in a business?
2. What is the difference between financial statement and income statement?
3. Why is record keeping important in a business?