28. What is a reserve fund? Why is a reserve fund treated as a liability?
29. What is a sinking fund, and what is its purpose?
30. What is a bond? Describe three classes of bonds.
31. When bonds are issued, by what account are they represented in the ledger? Does this account represent an asset, or a liability?
32. If bonds are sold at a premium, to what account is the premium credited? Would it be correct to credit this premium to profit and loss? Why?
33. To what account is the interest paid on bonds charged? When bonds are sold with accrued interest, which is paid by the purchaser, what disposition is made of the interest received? What disposition should be made of expense incurred in the sale of bonds?
34. What is the most important point to be kept in mind when devising a system of accounts for a manufacturing business?
35. From what items is the manufacturing account made up? What does the balance of manufacturing account represent?
36. Describe, briefly, a method of obtaining the necessary statistics to make up the manufacturing account for a business in which but one line of goods are manufactured? What is the object of sectionalizing the pay-roll by departments?
37. What is an expense inventory account; when is it used; and how is it made up? When is an expense liability considered; by what account is it represented; and how is the account made up?