11 Jan Usually an asset is acquired

Week 1 discussion

DQ1 Case Discussion

This week’s case centers around our increasing dependency on international trade. As a result, there is a movement toward one set of international accounting standards that would increase trade globally and add to the transparency of financial reporting.

Please answer and discuss the questions asked in our Financial Reporting Case IFRS 1–5 located on page 35 of the textbook.

DQ2 Accounting Information System

Based on your exposure to the accounting information system at your work place and your readings of Chapter 3 of the textbook, please describe the input, processing, and output of an accounting information system. Please illustrate your description with suitable examples.

Week 2 discussion

DQ1 Case Discussion

Please read CA 4-6 on page 191. Please answer and discuss the questions as required.

DQ2 The Income Statement

The income statement is an integral part of all financial statements presentations. There are two ways of creating the income statement: the single-step and the multiple-step methods. Based on your study of Chapter 4 and your research of professional literature, please discuss how a sinigle-step income statement is different from a multi-step income statement. What are the components of income in a multi-step income statement, how they are reported, what is intraperiod tax allocation, and what do you understand by comprehensive income?

Week 3 discussion

DQ1 Case Discussion

Read the Financial Reporting case on pages 254 and 255 of the text and answer the questions. Take one question at a time and answer it. Let the remainder of the class answer another question and then comment on the answers given, expressing why the answer was either correct or not correct and why.

DQ2 Financial Statements Purpose and Interrelationship

What is the purpose of the income statement and balance sheet? How are income statements, balance sheets, and retained earnings statements related? How do you classify assets and liabilities into various groups for reporting in a balance sheet? What is the purpose of a cash flow statement?

Week 4 discussion

DQ1 Time Value of Money

We all know that a dollar today is worth more than a dollar tomorrow. This is because in a situation of rising prices the purchasing power of a dollar goes on decreasing as the time passes by. We therefore need to know how much a dollar that we are going to receive in future is actually worth today. This is known as present value of money. Let’s start our discussion with the difference between present value and future value of money. Explain compounding and discounting of interest with suitable examples.

DQ2 Cash and Receivables

Cash and receivables form a very important part of the current assets of any company. Based on your study of Chapter 7 and your research on the Internet, define cash and cash equivalent and restricted cash. What are receivables? How do accounts receivable and notes receivable differ?

Week 5 discussion

DQ1 Inventory Accounting and Reporting

Based on your readings from the text book and your research, discuss how the inventory of a merchandising company differs from that of a manufacturing company. What are the two inventory Control Systems. Why is one better than the other? Explain with examples.

DQ2 Cost Flow Assumptions

Companies need to determine the cost of goods sold and the value of ending inventory to be reported in the balance sheet. Based on your readings of the text book and other material, discuss the four important cost flow assumptions companies use to arrive at the cost of goods sold and the value of inventory on hand. Illustrate each cost flow assumption with examples.

Week 6 discussion

DQ1 Codification Research Case

Please read the Codification Research Case on page 551 of the textbook and following the instructions. Please answer questions a, b, c, d, and e.

DQ2 Exchange of Nonmonetary Assets

Usually an asset is acquired by paying cash or credit; the accounting treatment as we know is very straight forward and we put this asset on the balance sheet at cost acquired. But when one company trades its asset for an asset of another company, the accounting treatment is quite different. Can you describe how to record an asset that is acquired by a company from another company in exchange of its own asset?

Week 7 discussion

DQ1 Depreciation Methods

Based on your readings of the textbook, Becker material, and your research, please discus the meaning of depreciation, amortization, and depletion. Given the importance of depreciation and the various depreciation methods available to use, what method should a company choose to compute depreciation on its assets?

DQ2 Case Discussion: CA11-1

Please read case CA11-1 on page 596 of the textbook and answer the questions a,b, and c following the case.