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Conceptual Understanding: Interim Financial Statements
1.Gulf Coast Drilling Company provides services for drilling operations off the coast of Louisiana. The company has a significant amount of debt to National Bank of New Orleans. The bank requires the company to provide it with quarterly financial state- ments. Explain what is involved in preparing financial statements every quarter.
Conceptual Understanding: purpose of Closing Entries
2. Pamela Turnbow, owner of Turnbow Fashions Company, notices the amount of time it takes the company's accountant to prepare closing entries. She suggests that the company could save time and money by not doing closing entries. She argues that only adjusting entries are needed to determine the company's earnings. Explain the purposes of closing entries and why they are worth doing.
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In a merchandising company's income statement, which of the following would NOT be included in the Cost of Goods Sold calculation?
A dilutive security can be either a bond or a preferred stock. The reason they are referred to as a dilutive security is because the security can be converted into common stock and share in the 'earnings per share' computation.
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What processes are indispensable to be performed and what outcomes are required from these processes to achieve business objectives?
during periods of rising prices a perpetual inventory system would result in the same dollar amount of ending inventory
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