ACC 421 Week 4

Individual Assignments From the Text

Resource: Intermediate Accounting

Write responses to Exercises E5-5 & E5-12 in Ch. 5 and Exercises E24-2 & E24-4 in Ch. 24 in Intermediate Accounting.

Individual Full Disclosure Paper

Resource: Intermediate Accounting

Write a 700-word paper addressing the following:

Answer Question 2 in Ch. 24.

Explain the need for full disclosure in financial reporting.

Identify possible consequences of failing to properly disclose certain items in financial statements.

Learning Team Assignments From the Text

Resource: Intermediate Accounting

Write responses to Problem P5-3 in Ch. 5 and Concepts for Analysis CA24-2 in Ch. 24 of Intermediate Accounting.

Discussion Questions

What does a statement of cash flows tell you about a company? Why is the statement of cash flows important? Can a company have profits but no cash? Why?

What is included in each section of the statement of cash flows? What does each section tell you about a company? Which of the three classifications of activities included on a statement of cash flows is the most important? Why?

What are the differences between the direct and indirect method of presenting a statement of cash flows? Which method of presenting a statement of cash flows is the best? Why? How does the statement of cash flows relate to the other financial statements?