Generally Accepted Accounting Principles and Total Stockholders Equity

hebdomad wiz Discussion Questions How would you describe the entries to record the disposition of accounts receivables? What is their kick the bucket? How atomic number 18 bad debts accounted for under the direct write off method? What are the disadvantages of this method? Pendergrass Company hires an history intern who says that intangible assets should always be amortized everywhere their legal lives. Is the intern correct? Explain. What are the elemental issues related to accounting for intangible assets? why would you hire the constituent of sales method for calculating enigmatic accounts instead of the percentage of receivables method? Is it appropriate to handling a hybrid of the percentage of sales and the percentage of receivables methods of calculating the allowance for doubtful accounts? Do the principally accepted accounting principles allow for using devil methods at the same time? wherefore? What is the deflexion in the midst of revenue expenditu res and capital expenditures during a reclaimable life? Are there similarities? DQ What are the differences between revenue expenditures and capital expenditures? Explain the entries of each(prenominal). calendar week both Discussion Questions What are the differences among valuation, derogation, amortization, and depletion? Is it appropriate to calculate depreciation using two distinct methods? wherefore? Which depreciation method provides you with the highest depreciation expense in the archetypical year? wherefore? What types of industries cave in unearned revenue? wherefore is unearned revenue considered a obligation? When is the unearned revenue recognized in the mo pelfary statements? Why do companies issue bonds? Would you rather demoralise a bond at a discount or a subvention rate? Why?What is the determining factor of whether a bond is change at a discount, face value, or premium? What is the straight-line method of amortizing discount and premium on bonds collectable? Provide an explanation of the process. How would you describe the accounting procedures for notes collectible and accounts getable? Week Three Discussion Questions Why does a union choose to form as a corporation? What are the steps take to become a corporation? What are the advantages and disadvantages of the corporeal form of doing business? Why is like profligate referred to as preferred?What are some of the features added to preferred occupation that make it more attractive to investors? Would you take in preferred line of work or usuals stock as an investment? Why? What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why? Why do corporations buy back their own stock? What does it manifest you about the corporation? What effect does the purchase have on the price of a companys stock? Chen, Inc. purchases 1,000 equatingcel of lands of i ts own previously issued $5 per common stock for $12,000.Assuming the shares are held in the treasury, what effect does this act have on (a) net income, (b) nub assets, (c) total paid-in capital, and (d) total stockholders equity? Chen, Incs treasure stock is resold for $15,000. What effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders equity? Week Four Discussion Questions Why are companies call for 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 a companys operations? 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? Two democratic methods of financial statement analysis are plane analysis and vertical analysis. What are the differences between these two methods? What are the differences be tween the direct and indirect debut of cash flows? Why does the Financial Accounting Standards gore allow both methods? Which do you prefer? Why? Why must preferred stock dividends be subtracted from net income in computing earnings per share?Why is common stock usually not issued at a price that is less than par value? What three conditions must exist onward a cash dividend is paid? Contrast the effectuate of a cash dividend and a stock dividend on a corporations balance sheet. Week Five Discussion Questions What is an example of a potentially unethical accounting positioning? Why is the situation unethical? How do ethics affect a companys financial results? Do you conceive of the Sarbanes-Oxley Act has made a difference in the ethical behavior of companies regarding their financial accounting? Why or why not?