Page 17 - Account for Ag - 2019
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CH 1] Introduction 1-9
QUESTIONS
1. Define accounting. 1
2. List several ways in which accounting data may be used.
3. What is the difference between accounting and bookkeeping?
4. What is the American Institute of Certified Public Accounts and what is their function?
5. What is the purpose of an audit?
6. T.J. Weber sold for $25,000 some acreage he had originally purchased for $12,000. How did
this transaction affect the total amount of (a) his assets? (b) his proprietorship?
7. Accounting is an indispensable tool of management. Do you agree? Explain.
8. What are the objectives of records and accounts?
9. List and explain the types of records as outlined in this chapter.
10. What is the cost principle of accounting? What is the importance of recording transactions
on a cost basis?
11. U.S. Grant purchases some used equipment for $2,500 to be used in his operation that he is
certain is worth $3,200. At what amount should the equipment be recorded by Grant?
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