ACC 291 All DQs

Week 1

Discussion Questions

How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method?

How would you describe the entries to record the disposition of accounts receivables? What is their function?

Week 2

Discussion Questions

Which depreciation method provides you the highest depreciation expense in the first year? Why?

What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements?

Week 3

Discussion Questions

What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements?

Why is preferred stock referred to as preferred? What are some of the features added to preferred stock that make it more attractive to investors? Would you select preferred stock or common stock as an investment? Why?

Week 4

Discussion Questions

Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

What are some common ratios used to analyze financial information? Which are the most important? What are some examples of how ratios are used in the decision making process?