Discussion 3: Describe the process of required communication between a successor and predecessor auditor.

Discussion 1: List the four phases of a financial statement audit.  

On December 1, 2024 Lilly Inc. declared and paid a $5,000 cash dividend to its stockholders. How does this transaction affect the accounting equation?

Which of the following is a TRUE statement about the income statement?

A company receives $10,000 from a customer on December 15, 2024 for services that the company will provide to the customer on January 16, 2025.  Which of the following statements is TRUE?

The information below is provided for a company. What is the total amount of current assets?  Accounts payable                               $ 16,600 Buildings                                                 81,600 Cash                                                        12,100 Accounts receivable                              11,100 Salaries payable                                       6,100 Retained earnings                                  30,800 Supplies                                                    4,600 Notes payable (due in 18 months)       36,400 Interest payable                                       4,500 Common stock                                       15,000

Which of the following is FALSE regarding the Statement of Stockholders’ Equity?

Lilly Inc. had the following transactions during 2024: Purchased land costing $10,000 cash. Purchased supplies costing $1,000 cash. Provided services to customers for $5,000. The customers paid at the time of service. Paid $2,000 dividends to shareholders. Issued stock for $8,000 cash. Sold a building for $15,000 cash. What was the effect of the above transactions on Operating cash flow?  If increase – indicate with a positive number. If decrease – indicate with a minus sign “-“.

Provide an example (as discussed in class) of one of the primary external financial decision makers. I’m looking for a one word answer. There are multiple correct answers.

The primary purpose(s) of the accounting cycle “closing entries” is: