ACC 290 All DQs

Week 1

Discussion Questions

What are the four basic financial statements? What is the primary purpose of each of the four basic financial statements? In your opinion, which financial statement is the most important? Explain why.

How would the financial statements be useful to managers and employees? How would the financial statements be useful to investors and creditors?

What are debits and credits? How are debits and credits used to record business transactions?

Why do accountants debit asset accounts to increase them but credit liability accounts to increase them? Why do accountants debit expenses to increase them but credit revenues to increase them?

Week 2

Discussion Questions

What is accrual accounting? Why do generally accepted accounting principles require accrual accounting?

What is the difference between accrual and cash accounting? When might an accountant use cash basis accounting without violating generally accepted accounting principles?

What is the revenue recognition principle? What is the expense recognition principle? Why are they important to financial reporting?

Week 3

Discussion Questions

What are the steps in completing the accounting cycle? How do the different steps affect the financial statements? What is the effect on the financial statements of missing a step when completing the accounting cycle?

What are the four closing journal entries? Why are they necessary? What are reversing entries? Why are they used?

How has automation aided the preparation, accuracy, and use of the financial statement worksheet?

Week 4

Discussion Questions

What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system?

Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically?

In a period of increasing prices, why would the company tax accountant prefer the last in, first out method while the CEO would prefer first in, first out? Why is this important?

Week 5

Discussion Questions

How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser?

Using examples of weak internal controls in an organization you are familiar with, how would you improve those controls to better safeguard a companys assets? Would these internal controls differ with a different type of business?

What is the Sarbanes-Oxley Act of 2002? Why did it come about? How have the new rules in the Sarbanes-Oxley Act of 2002 affected the way accounting departments and companies operate? What are some positive outcomes from these changes?