30 Dec There are different tools

WEEK 1: FINANCIAL REPORTING ENVIRONMENT, FINANCIAL STATEMENTS, AND RATIOS

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What is the purpose of Accounting? Who are the users of Accounting information?

ACCT504 Week 2 Discussion Latest 2018 January

WEEK 2: ACCOUNTING EQUATION, ACCOUNTING CYCLE, AND ACCRUAL ACCOUNTING

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In this area, we will discuss the significance of the accounting equation, the rules of debit and credit, and the steps in the accounting cycle. We will talk about recording of transactions, normal balances, and the creation of the trial balance.

Let’s begin by asking this question: What is the role of the accounting equation in the analysis of business transactions?

ACCT504 Week 3 Discussion Latest 2018 January

WEEK 3: MERCHANDISING OPERATIONS, INCOME STATEMENTS, AND INVENTORY COST-FLOW ASSUMPTIONS

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In this area, we will discuss the accounting for inventory transactions of merchandising companies, the two formats of preparing the income statement, and how to evaluate the profitability of a merchandising company. We will also discuss how companies determine the year-end inventory value and cost of goods sold using one of the cost-flow assumptions. Finally, we will also examine the impact of choosing a certain cost-flow assumption on the tax liability and other financial statement numbers of a company.

Let’s begin with this question: How is the income statement of a merchandising company different from that of a service company?

ACCT504 Week 4 Discussion Latest 2018 January

WEEK 4: INTERNAL CONTROL, REPORTING CASH, AND ACCOUNTING FOR RECEIVABLES

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In this area, we will talk about the importance of internal control in a business organization and the reporting of cash on the balance sheet as well as managing receivables and estimating uncollectible accounts. What is internal control, and what are the objectives of a well-designed internal control structure in an organization?

ACCT504 Week 5 Discussion Latest 2018 January

WEEK 5: PLANT ASSETS, INTANGIBLES, AND ACCOUNTING FOR LIABILITIES

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Companies have a significant amount of investment in long-lived assets, which include property, plant and equipment (commonly referred to as plant assets), and intangible assets. We will also discuss different types of liabilities and understand how to account for and report those liabilities.

Let’s begin by talking about plant assets. Can you tell us what kind of plant assets are used in your company or place of business? Do you have an estimate of the amount invested in those plant assets?

ACCT504 Week 6 Discussion Latest 2018 January

WEEK 6: ACCOUNTING FOR AND REPORTING EQUITY AND THE STATEMENT OF CASH FLOWS

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Stockholders’ equity is an important heading in a corporate Balance Sheet. Let’s begin the discussion of stockholders’ equity by asking: How is the stockholders’ equity section of a corporate Balance Sheet different from that in a single-owner business?

ACCT504 Week 7 Discussion Latest 2018 January

WEEK 7: DIFFERENT TOOLS OF FINANCIAL ANALYSIS

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There are different tools for analyzing the financial statements of a company, such as horizontal analysis, vertical analysis, ratios for measuring financial health and profitability, and so forth. Before we begin using these tools, however, it is important to know the purpose of each tool.

Why do we need different tools for analyzing the financial statements? Don’t the numbers in the financial statements speak for themselves?