With 150-200 words, answer the following questions. Support all your response with at least one reference.
1-1. If you were to open a business, what form of business organization would you use, and why?
2-1. The term “adjusting entries” refers to a very important step in the accounting cycle. Explain when, why, and how the adjusting process is used. Provide an example to clarify your statements.
3-1. The choice of inventory method is critical to the merchandising operation. Identify a well-known company, and state what inventory method you think would be best for that company, and why.
4-1. Consider your workplace (current or former) and identify any internal control procedures that you have seen implemented. Were they effective? Why, or why not? (If you do not have current or prior work experience, identify a place that you have observed internal controls in place, such as a store where you shop.
5-1. The cost of maintaining assets can be a challenge. How do you determine when and why to dispose of plant assets? What are the options for accounting for these dispositions? Provide examples to illustrate your response.
6-1. Find the financial statements of a publicly traded company and review its liability section of the balance sheet. What liabilities are included? What is the mix of current and long-term liabilities? What is the company’s current ratio and debt ratio, and what do these ratios tell us about the company?
7-1. Find the financial statements of a publicly traded company and review its stockholders’ equity section of the balance sheet. Does the company have common stock? Preferred stock? Treasury stock? Do you see anything unusual in this section of the balance sheet?
8-1. Find the financial statements of a publicly traded company and review its statement of cash flows. Of the company’s cash flows from operating activities, investing activities, and financing activities, which ones are net cash inflows and which are net cash outflows? What does this indicate about the company? Do you see anything unusual in this statement?