1. What is the revenue recognition principle? What is the expense recognition principle? In your opinion, why are these important to financial reporting.
2. What are the four different adjusting entries? What accounting assumptions necessitate the use of adjusting entries? What accounts are subject to adjusting journal entries? What are your thoughts on making adjusting entries; are they really needed or is this just extra work by accountants? What are the advantages and disadvantages of using automated accounting systems to do adjusting entries?
3. What is the benefit of a single set of high-quality accounting standards? Discuss the potential advantages and disadvantages that countries outside the United States should consider before adopting regulations, such as those in the Sarbanes-Oxley Act, that increase corporate internal control requirements