devry acct504 week 3 and 4 discussions

Week 3: Merchandising Operations and Inventory – Discussion

Merchandising Operations and Income Statements (graded)

In this area, we will discuss the accounting for inventory
transactions of merchandising companies, the two formats of preparing the
income statement, and how to evaluate the profitability of a merchandising
company.

How is the income statement of a merchandising company
different from that of a service company?

Week 3: Merchandising Operations and Inventory – Discussion

Inventory Cost-Flow Assumptions (graded)

In this area, we will talk about how companies determine the
year-end inventory value and cost of goods sold using one of the cost-flow
assumptions. We will also discuss the impact of choosing a certain cost-flow
assumption on the tax liability and other financial statement numbers of a
company. Finally, we will discuss how to analyze inventory numbers.

Why is inventory important for a business? How is inventory
different from other assets of the business?

Week 4: Internal Control, Cash and Receivables – Discussion

Understanding Internal Control and Reporting Cash (graded)

In this thread, we will talk about the importance of
internal control in a business organization and the definition and reporting of
cash on the balance sheet.

What is internal control and what are the objectives of a
good internal control structure in an organization?

Week 4: Internal Control, Cash and Receivables – Discussion

Accounting for and Reporting Receivables (graded)

Receivables constitute an important line item on a company’s
balance sheet. In this thread, we will discuss the accounting for receivables,
the ways to estimate uncollectible accounts, and how companies manage their
receivables.

How do companies account for the possibility that some of
their customers might not pay down the road?