Question 1: Mastery: You have taken over a set of accounting books for a small business as a part-time job. At the end of the first accounting period, you have partially completed the worksheet by entering the appropriate ledger accounts and balances in the Trial Balance columns. You turn to the manager and ask, "Where is the list of additional information I can use to enter adjusting entries?" The manager indicates that no such list exists. In all the text problems you have solved, you have always received this information. How would you obtain information relating to this real situation? The step I would take would be to look at the balance sheet. If the balance sheet was balanced compared to the previous period, I would work backwards to determine where the company stands in the current period. The reason I would look at the balance sheet is that if everything was in balance at the end of the last period, it would be easier to move forward with that information. I was looking at the revenue accounts to see what revenue was recorded and where entries were missing. I would then check the liability accounts to see if there are any missing transactions on the payables accounts. With this information, I think it would be possible to establish a starting point to do a follow-up review just to see where the company stands financially and if there might be any issues that might require additional input. adjustments. Distinguished: What are the consequences of not making all of the required adjustments at the end of the financial year? If adjusting entries were not recorded at the end of an accounting period, the company's financial information would be inaccurate. The company would misrepresent its financial situation and mislead investors...... middle of paper ......0; 2014: $172,500. Determine the current ratio for 2013 and 2014. Does the change in the current ratio between 2013 and 2014 indicate a favorable or unfavorable trend? The current ratio for 2013 is $262,500 = 1.75:$1,150,000. $310,500 = 1.80: $1,172,500 The trend shows that the company is improving its current ratio in 2014 and this is a favorable trend. The company shows an improvement of 0.05 from 2013.ReferencesHermanson, R., Edwards, J. and Maher, M. (2010).Accounting principles: a business perspective. (Vol.2). Manuel Équité inc. DOI: www.textbookequity.comSiegel Ph.D. CPA, Joël G.; Cale Ph.D., Jae K. (02/01/2010). Dictionary of Accounting Terms (Barron's Dictionary of Accounting Terms) (p. 129). Barron's Educational Series. Kindle Edition.