ACCT 301 – Weekly Homework
The primary reading material source is http://www.principlesofaccounting.com/
(For additional information, use the OpenStax textbook available within LEO as a secondary resource.)
SCENARIO: You are a new hire for a major corporation completing your eight-week rotation related to accounting, financial reporting, budgeting, cost control, and profit maximization. As part of your rotation you are learning about the accounting process and how to use accounting information to make managerial decisions.
Read the assigned chapters to learn the accounting concepts, then submit a written report in the LEO assignment folder summarizing your knowledge of the week’s concepts. You should create this report to provide documentation/evidence of your assigned chapter readings and self-assessment exercises (Fill in the Blanks, and Multiple Choice questions at end of each chapter). (A series of projects focused on your SEC10K corporation will be completed and submitted separately.)
REQUIREMENT: As described above, upon completion of the readings and quizzes (the week’s assigned chapters are detailed below) write a report as a Word document and upload it to this week’s Homework assignment folder. Summarize what you learned through your readings and practice quizzes. Demonstrate an understanding of the week’s concepts. The more detailed writeups documenting a solid understanding of the material will earn the highest homework points.
Week 3:
A. Read and complete the self-graded questions for ch 7, 8, and 12 at PoA.
B. Review your SEC 10-K company’s balance sheet (statement of position).
Your SEC 10-K company communicates their philosophy and financing strategy on the balance sheet through reporting of assets and liabilities. First, what is Working Capital? It is calculated as:
Current Assets – Current Liabilities = Working Capital
Working capital (WC) may be negative if current liabilities (CL) exceed current assets (CA). If this occurs, what does this indicate about the corporation’s financial position? Is this a cause for concern? How does your SEC 10-K company address this issue? Do they discuss strategy for overcoming a negative working capital?
The basic accounting equation is: Assets – Liabilities = Owners’ Equity. This basic equation is illustrated by reporting assets, liabilities and owner’s equity on the balance sheet. If owner’s equity is positive, this is a favorable position. For some companies, especially if they recently recapitalized with debt, there may be negative equity. Discuss your corporation’s financial position reported on the balance sheet.
Consider the classified balance sheet. What is a classified balance sheet? How is a classified balance sheet different from a more traditional balance sheet format that lists all assets and liabilities as one total. What is the benefit of creating subtotals within assets and within liabilities to separate current from non-current?
Provide a summary of the accounting concepts learned through the readings and practice quizzes for this week. Demonstrate your understanding of the week’s concepts. The more detailed your write-up documenting your understanding the higher it will be graded. (See Rubric for details.)
After addressing the above topics, additional topics you can incorporate into your weekly homework assignment:
• Why do companies need to value their accounts receivable at the end of each accounting period?
• Discuss the differences between the inventory accounting methods (LIFO, FIFO, Weighted Average, Specific Identification). Do these inventory methods reflect the actual flow of inventory?
What are some of the current liabilities you learned about in this week’s readings.
• What topic(s) gave you trouble this week (if any)?/What topic(s) do you feel you were able to grasp? Post questions in the homework discussion thread!
The most important aspect of this write-up is to document your understanding of the week’s concepts!
Remember all submissions and postings in our class must be in your own words. Deliverables are to be single spaced with double spacing between paragraphs. These are business reports, thus proper spelling, grammar, and professional writing is expected. Your report submission serves as your new hire eight-week rotation report to your supervisor regarding the knowledge learned for this week’s material related to accounting and financial reporting.
