5. Discuss the principles governing the valuation of bonds purchased at either a discount or a premium for temporary account.
6. What kind of an asset is unissued stock?
7. Differentiate between the valuation of unissued stock and that of treasury stock.
8. Give a summary of the principles of valuation of temporary investment assets.
9. Define and give a few examples of accrued income.
10. Explain the cash method of handling accruals and tell why it is inadequate.
11. Explain the “accrual method.”
12. On what basis should accrued items be valued, and how should they be classed on the balance sheet?
13. Discuss and illustrate the methods of accounting for accrued income.
14. Define and give examples of prepaid expense items.