Question

In Chapter 4, you learned about Vendors, Writing Checks, and Financial Statements - List two things you thought were rather intuitive and two things you think were challenging / confusing. Elaborate on each.

Answer 1

Two things found to be intuitive are that vendors is actually a supplier who provides goods and services to either company or any other entity and second is Financial Statements shows sources and it's application for example if we took loan and utilise it in purchasing an asset so here loan is one of source and asset is it's application.

And now two things that were challenging are, first At the time of writing checks what prevails if amount in figure does not match with amount in words I know that check becomes invalid then also what to be considered by us for to judge validity of check if some issues in our favour as what I think again that words prevail and issuer can be told that his words are not matching with amount in figures. Second challenging thing is about financial statements and that was about adjustments related to debtors specially in case of Bad Debts with new and old provision and also confusion in foreign exchange transactions where opening, closing and average rates are given. These topics need more time to be given to over come confusions.