acc549 all module discussions latest 2017

Module 1 discussion What year did the FASB take on the responsibility of developing generally accepted accounting principles (GAAP)? Which body accepted the primary responsibility for the development of GAAP prior to the FASB? Do you believe the FASB should continue to be the organization primarily responsible for the development of GAAP? Why or why not? Module 2 discussion The balance sheet also known as the statement of position shows a company’s financial position at a point in time. Included on the balance sheet are various assets that are reported at an estimated value. Discuss the importance of the balance sheet to stakeholders including but not limited to investors creditors and governmental entities. With the core value of integrity in mind explain why it is important that management ensure the reliability of the estimates used by accountants and the information provided on the balance sheet. Module 3 discussion An income statement is a summary of revenues and expenses and gains and losses ending with net income for a specific period of time. Indicate the two traditional formats for presenting the income statement. Which of these formats is preferable for analysis? Why? Module 4 discussion Ratio analysis is quantitative analysis of information contained in a company’s financial statements. Commonsize analysis converts each line of financial statement data to an easily comparable amount measured as a percent. Both ratio analysis and common size analysis are important tools used to analyze the financial results of corporations. Explain the importance of both types of analysis. In your explanation it is imperative you provide examples of ratios with their measurement. Do you believe ratio analysis is better than common size analysis or vice versa? Why or why not? Module 5 discussion Companies carry various types of long-term assets on their books. These may include property plant and equipment investments in bonds investments in stocks patents and goodwill to name a few. Is it feasible for managers to get a precise measurement of the funds that could be available from long-term assets to pay long-term debts? Locate the annual report (10K) of a publicly traded company. Discuss the types of long-term assets on the books that could potentially be used to pay off the long-term debts. Is this company in a position to pay off all their long-term debts with their long-term assets? Module 6 discussion Profits might be compared with assets sales and stockholders’ equity. Why might all three bases be used? Will trends in these ratios always move in the same direction? Why? Compute the ratios for an actual company. Did the ratios move in the same direction from one year to the next? Module 7 discussion A member of the board of directors is puzzled by the fact that the firm has had a very profitable year but does not have enough cash to pay its bills on time. Explain to the director how a firm can be profitable yet not have enough cash to pay its bills and dividends. Module 8 discussion Financial ratios are used extensively to analyze interpret and explain the information provided in financial statements. Why do you believe this is so? Who are some of the stakeholders interested in financial ratios and analyses? Calculate 3 or 4 financial ratios of an actual company. Show how you calculated these ratios describe the meaning of the ratios you selected and discuss why you chose to calculate these ratios.