ACCT-290 - Class Discussions Questions Preparing the Financial statements, accounting homework help

For Week 3 we will study the remaining three stepsin the Accounting Cycle: 7. Preparing the Financial statements, 8.Journalize and Post Closing Entries, 9. Prepare a post-closing trialbalance. How do the different steps affect the financial statements? Whatis the effect on the financial statements of missing a step whencompleting the accounting cycle?Step 7 of the Accounting Cycle is preparing the Financial Statements. There is a specificorder that the Financial Statements need to be prepared. Discuss the specificorder and explain why it is important.Step 8 of the Accounting Cycle is to journalize and postthe closing entries. What are the four closing journal entries? In youropinion, why are these necessary? Check out Appendix 4A on page 195-196 of the e-book. In your opinion, what is the mainpurpose and benefits of a financial statement worksheet in assisting with thecompletion of the accounting cycle? Note that a using a worksheet is optional.How would you describe the difference between the operating cycles of a Service Company and that of a Merchandising Company? What accounts would a merchandising company have in itschart of accounts that would be different from a service-based company?What is the difference between a perpetual inventory system and a periodic inventory system? Pick one and discuss the advantages and disadvantages.One unique aspect of merchandising financial statements is the Cost of Goods Soldaccount. How would you calculate cost of goods sold at the end of an accountingperiod under a periodic inventory system? What items make up cost of goodssold?What is the difference between a single step income statement and a multiple step income statement?What are the advantages and disadvantages of each? If you were a businessowner, which type would you prefer to use?Answers can be up to 70 words each.