The Chapter Discussed Four Types of Flowcharts

question 10

Essay

The chapter discussed four types of flowcharts. Which one would be most appropriately used in each of the following independent situations?
A. Demonstrating how to create a procedures manual
b. Explaining what happens in a financial statement audit
c. Illustrating the steps in the accounting cycle
d. Showing the relationship between computers and printers within an office building
e. Tracing the path of a check from the time it is written until it is paid by the bank
f. Writing computer code that will generate general purpose financial statements

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Definitions:

Bonus

When a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Fair Market Value

The value at which an asset would be sold in a competitive bidding environment.

Capital Account

A financial statement that shows the changes in ownership interest of a country or an organization.

Accounting Records

Accounting Records are documents and ledgers that capture all financial transactions of an entity, serving as a basis for financial statements and audit.