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ACCT 212 Financial Accounting Complete Course Discussion
ACCT 212 Week 1
Introduction to Financial Statements â€“ Discussion
Financial Statements (graded)
One key concept for week 1 is that financial statements are comprised of 4 statements: 1) Income Statement, 2) Balance Sheet, 3) Cash Flows Statement, and 4) Statement of Retained Earnings.
External users of financial statements, such as investors or banks, review the financial statements to perform analysis on the company. For example, to determine if s/he wants to buy the stock of a company, the investor may review how much profit the company has generated during the past two years. Or, to determine if a bank should provide a loan to the company, the loan officer may review the companyâ€™s cash balance from the previous two years.
Which financial statement do you believe provides the best information to determine if a company is performing well financially and/or is financially stable? Why?
ACCT 212 Week 2
The Accounting System and Accrual Accounting â€“ Discussion 1
Prepaid Expenses vs. Unearned Revenue (graded)
From this weekâ€™s reading, you were introduced to the concept of unearned revenue and prepaid expenses. Imagine that you are CFO of a company that manufacturers picture frames. Your company wants to become more vertically integrated, meaning it no longer wants to purchase the products that go into the frame, but rather manufacture them. To do this, your company has decided to acquire a glass manufacturing company. There are two glass manufacturers that your company is deciding between: Glass Râ€™ US and Glassâ€¦
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