ACC 422 Week 3

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ACC 422 Week 3

Individual Assignments From the Text

Resource: Intermediate Accounting

Prepare written responses to the following assignments from the text:

Ch. 9: Exorcices E9-1, E9-12, & E9-19

Ch. 10: Exercises E10-5 & E10-12

Learning Team Assignments From the Text

Resource: Intermediate Accounting

Prepare written responses to the following assignments from the text:

Ch. 9: Problem P9-9

Ch. 10: Problem P10-8

Discussion Questions

What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not. Should the financial statements reflect the value of fixed assets? Explain why or why not.

What are the different methods used to calculate depreciation? How does a company decide which method it should utilize? How does its choice affect the financial statements? Should companies standardize the method of depreciation to enhance comparability? Explain your answer.

What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some intangible assets not amortized? What is the implication to the financial statements?

Why are research and development costs expensed? Is this consistent with how other similar costs are handled? Explain why or why not. Should research and development costs be expensed? Explain why or why not.

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