ACCT 304 Discussions Week 1 to 7 Intermediate Accounting 1
ACCT 304 DiscussionsWeek 1
ACCT 304 Week 1 DQ 1 Development of Accounting Standards:
Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statements. Lets start by getting an understanding of why the guidelines were developed in the first place? Who relies on the financial statements (external users)? What happens if an External User relies on financial statements that are inaccurate? What negative consequences can arise from relying on inaccurate financial statements?
ACCT 304 Week 1 DQ 2 Accounting Conceptual Framework :
A sound foundation is necessary for success in any task from building a house to putting on make-up. In terms of U.S. Accounting Standards, it is also necessary to have a sound foundation, referred to as the conceptual framework. Lets discuss it step by step starting with the objective. What is the objective of accounting standards?

ACCT 304 DiscussionsWeek 2
ACCT 304 Week 2 DQ 1 Balance Sheet- Purpose and Uses:
The balance sheet is one of the first financial statements I turn to when reviewing a company. You can learn a lot about a company by looking at its balance sheet. The balance sheet is also called the statement of financial position. Why is this? What is the purpose of the balance sheet?
ACCT 304 Week 2 DQ 2 Disclosure Notes:
Disclosures are required to elaborate on certain items that are presented in summarized form in the financial statements. There are specific disclosure notes that are required to be present in all financial statements, while others may be unique to the disclosure needs of a particular company.
Lets start by discussing the three required disclosures. Please pick one and explain what information is to be included in the note:
Summary of Significant Accounting Policies
Subsequent Events
Third Party Transactions

ACCT 304 DiscussionsWeek 3
ACCT 304 Week 3 DQ 1 Income Statement:
Students often refer to an income statement as the statement that shows how much money a company has made. Money, by definition, is something that is generally accepted as a medium of exchange or means or payment. Keeping that definition in mind, an income statement is not a measure of money, but rather it is a measure of net income (or loss) also known as profit (or loss). Select a publicly held company like Apple, Microsoft, IBM, Hewlett Packard, Home Depot (Note: do not select a company already chosen by your classmate). Go to their website and select Investor Relations and there you will find the companys annual report. Provide the link to that annual report and based on what you have read about income statements in this chapter and in the Becker materials, tell us what you have learned about the company from reviewing its income statement.
ACCT 304 Week 3 DQ 2 Cash-Flow Statement:
The Statement of Cash Flows has historically given students a lot of heartburn, but it really isnt that scary. A cash-flow statement, simply stated, reports the uses (where the cash was spent) and the sources (where the cash came from) of cash during a period. Lets start with a very simplistic set of facts. I run a CPA firm, and I billed my clients $50K during the month of February. To earn that $50K, I incurred $20K of wage expense and another $10K of overhead (rent, utilities, insurance, etc.). So I made $20K profit, right? So I am sitting pretty? Not necessarily. What if I now tell you that $40K of my billings have yet to be collected? And my E&O insurance carrier increased my premium and I had to pre-pay $10K of premiums this month. How does my cash flow differ from my profit? Will these transactions appear on my income statement? My cash-flow statement?
ACCT 304 DiscussionsWeek 4
ACCT 304 Week 4 DQ 1 Revenue Recognition:
When a company sells a product for cash, it generally recognizes the revenue. However, there are situations when it is not always clear when a company should recognize the revenue. How do you handle a car dealership that sells a warranty contract to its customers for $650 that will cover the next 5 years?
ACCT 304 Week 4 DQ 2 Time Value of Money Concepts:
You might think of the time value of money to be a topic for Finance class, but accountants need an understanding of this topic as well. Lets discuss where/why an accountant may need to use these skills/calculations.

ACCT 304 DiscussionsWeek 5
ACCT 304 Week 5 DQ 1 Cash:
Cash is listed first on the balance sheet because it is the asset most readily available to pay off debt or use in operations. Cash is also one of the assets that most often grows legs and walks away. Therefore, it is important that any business protect its cash; it does so through Internal Control Procedures. Please start by defining Internal Control, then discuss specific procedures related to cash.
ACCT 304 Week 5 DQ 2 Receivables:
When a business extends credit to its customers, we call this Accounts Receivable. Often a business will grant its customers a discount. What are the two types of discounts, and how does the journal entry to record the sale change when there is a discount granted?

ACCT 304 Discussions Week 6
ACCT 304 Week 6 DQ 1 Inventory Classification and Systems:
Merchandise Inventory is assets held for sale in the ordinary course of business of wholesale and retail companies. Manufacturing inventories are raw materials or WIP that will be used or consumed in the production of finished goods to be sold. Review the Annual Report that you chose for the Week 3 Discussion topic #1 and based on what youve read in the text and in the Becker materials, explain how inventory is presented on the balance sheet and what further information you found in the footnote disclosures about the inventory method and Impairment of Inventory, if any.
ACCT 304 Week 6 DQ 2 Inventoriable Costs Cost-Flow:
We read about the Perpetual and the Periodic Inventory System. Regardless of which system is used, under both, we need to assign dollar amounts to the Ending Inventory and Cost of Goods Sold so that we can trace how costs flow through the system. Start by identifying what is included in inventory and then discuss how each item might be treated differently in the Perpetual vs. the Periodic Inventory System.