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assignment know that I need to check your answers against text book answers for
accuracy and I have to use a plagiarism checker to check the work. If the
answers are cut and paste from textbook responses on sites, I’ll have to turn
the work down. Answers need to be in your own words – if you know the material,
this should not be a problem and a quick buck. Thanks for listening. DS
Answer each of the following questions in your own
words. (Do not plagiarize from the textbook or any
other source.) I want to see what you have learned in
Question 1: You are visiting with a
friend, Jerry Bidwell, who wants to start a new business. During
discussions on forming the business, Jerry makes this statement:
"Our business will have accounts receivable and accounts payable.
It will also acquire a substantial amount of computers and equipment.
Will it be acceptable to use the cash basis of accounting?"
Prepare a response for Jerry.
Question 2: "Adjusting entries are
required by the cost principle of accounting." Do you agree with
this statement? Explain fully.
Question 3: "Depreciation is a
valuation process that results in the reporting of the fair value of the
asset." Do you agree with this statement? Explain fully.
Question 4: Distinguish between the two
categories of adjusting entries and identify the types of adjustments
applicable to each category. Explain fully.
Questions 5: Will an adjusting entry ever affect the asset
account called "Cash?" Why or why not? Explain fully.