Discussion Post I
i. What kinds of risks does a firm like Amazon.com face with respect to safeguarding its assets?
ii. What types of controls do you think it already has in place to minimize these risks?
Go to the firm's website and click on "Investor Relations." You'll be able to find the firm's annual report to help you answer these questions.
i. Are any specific controls mentioned in the annual report?
ii. What depreciation method does Amazon use for property and equipment?
Discussion Post II
This week we are studying liabilities and how we account for them. Pick a large NYSE or Nasdaq company that you know something about or do business with. (Do not use Amazon). Go to their website, under Investor Relations find their latest annual report.
i. Describe the items they have listed in the Balance Sheet as liabilities.
ii. Distinguish between how short-term and long-term debt obligations are reported in a company's financial statements and give the dollar totals of each.
iii. Search the Notes to the financial statements to determine what they discuss about their liabilities. What additional details do they give that are not in the financial statements?
iv. Where else might you find information about the company debt in the annual report and what would it tell you?
v. From what you learned so far about their liabilities, how do you evaluate the company?
Discussion Post III
We are starting to study how companies can get and record funding. There are three ways: from Liabilities, from issuing Stocks, or from Profitable Operations.
i. Describe each of these three ways and indicate where on the financial statements you could find the information about each. Hint: It might be in more than one place.
ii. Give the advantages and disadvantages for each.
iii. Give an example for each and show how you would record the transaction in the accounting
Discussion Post IV
ACME Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Bill, the owner of ACME, has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases by December 31. Bill told the customers he would allow them, until the end of February, to pay for the purchases, just as if they had made their purchases in January.
i. Explain if you think there are ethical implications of Bill's actions.
ii. Which ratios will be affected, and how, by accelerating these sales?
Discussion Post V
You are forming a business with a couple of construction friends who want to build custom homes. They are good at construction, but do not know anything about accounting. Using the example of the construction in the PBS tv show "This Old House":
i. Explain for your new business associates how you would do the accounting for this type of business.
ii. Using proper terminology and accounting concepts, give a general explanation of the different types of costs involved and make up some sample transactions to record what you see on the tv show. You can assume the costs amounts and identify anything else you are assuming in order to record the transaction.
iii. What other transactions and costs need to be recorded that you do not directly see on the tv show
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.