Current liabilities are due within the current operating cycle, which is usually a year. Examples of current liabilities include accounts payable, sales tax payable, unearned revenues, and short term notes payable. The payroll process also creates current liabilities. A business may know that a liability exists but not know the exact amount. In these cases, […]

A budget is a financial plan that managers use to coordinate a business’s activities. Budgeting provides a plan for the company’s future. The budgeting process coordinates a company’s activities requiring managers at all levels to work together. Budgeting also provides a benchmark that helps managers evaluate performance.   A master budget is a set of […]

Manufacturing Accounting  Unlike service companies, manufacturing companies have three inventory accounts: raw materials, work-in-process, and finished goods. Manufacturing costs can be classified into three categories: direct material, labor, and overhead. Another method to classify costs is as product and period costs. Product costs, like raw material, can be traced directly to the product. Period costs […]

Cash Flow Statement The statement of cash flows reconciles the beginning cash total to the ending cash total by showing cash inflows (sources) and cash outflows (uses). The statement shows the company’s ability to pay future cash obligations.   The statement is divided into three parts: operating, investing, and financing activities. In your post, address […]

Current liabilities are due within the current operating cycle, which is usually a year. Examples of current liabilities include accounts payable, sales tax payable, unearned revenues, and short term notes payable. The payroll process also creates current liabilities. A business may know that a liability exists but not know the exact amount. In these cases, […]

Revenue is a common place for fraud because it is a significant measure of a company’s success.   Describe two U.S. or international accounting fraud cases related to improper revenue recognition.   Cite the resource where you found the information.   Reflect on each fraud case, and share your thoughts on why it was deemed […]

Explain how the use of the fair value option for investments in debt securities can mitigate volatility in reported earnings caused by measuring related assets and liabilities differently, without applying complex hedge accounting provisions. Additionally,   Illustrate your point with an example.   Include how to reduce volatility in your response.   DQ2  Debt [WLO: […]

Auditors face several issues when assessing the probability of a contingent loss and a range of possible losses. In your post, address the following:   Discuss the ways in whichS. GAAP and IFRS estimates of contingent losses can differ.   How is the terminology different between U.S. GAAP and IFRS?   Why are the differences […]

What are some of the judgments used in estimating the future economic benefit (i.e., measuring the value) of intangible assets? Why would you want to estimate risk associated with cash flows?   DQ2 Intangible Assets [WLOs: 1, 2, 3, 4] [CLOs: 4, 5]   Prior to beginning work on this discussion, review the following:   […]

Companies monitor factors such as days sales outstanding (DSO) and inventory levels to assess its ability to collect cash quickly from a potential customer. In your post,   Discuss the financial ratios a firm can use to measure the time it will take to collect cash from a potential customer on average.   Show how […]