Academic Report - Project Financing Management - China I --

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All essay questions require full, grammatically correct sentences which include your reasoning and/or explanation. Write your answers in a separate Word file. Do NOT write them in an Excel worksheet. Below is the corresponding Excel file that you will need in order to answer the following Essay Questions:

1. For each of the following accounts, write a short paragraph in narrative format (NOT in outline format) in which you indicate (a) the type of account (Asset, Liability, etc.), (b) on which financial statement it appears and under what heading if any, (c ) what its account balance represents.

Number your paragraphs to correspond with the following list of accounts.

[url removed, login to view] stock

[url removed, login to view]

c. Accounts receivable

d. Accounts payable

e. Sales

f. Cost of goods sold

2. Explain the account called "Retained Earnings". What does it represent?

a. What causes it to increase?

b. What causes it to decrease?

3. When a sale of merchandise is made for credit (on account), what three accounts are increased? What account is decreased?

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