Devry ACCT 504 DQ questions week 3 & 4

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 – DiscussionInventory 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 – DiscussionUnderstanding 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 – DiscussionAccounting 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?