ACC 291 All Assignments

Question 2

$700

$680

$686

None of the above

Week 2 - Chapter 09 Practice - Quiz 1

Week 2 - Chapter 10 Practice - Quiz 1

Week 2 - Individual WileyPLUS Assignment

Week 2 - Reflection Summary

Reflection Summary Assignment

Name

ACC 291 / Principles of Accounting II

Date

Instructor Name

Identify the entries associated with acquisition, disposal, and sales of plant assets.

Recording of the acquisition of plant assets is important so the company can track their asset and asset depreciation. The textbook explains the cost principle, “…requires that companies record plant assets at cost." When the employee handling the accounting records the entry they debit is applied to the asset and a credit to the corresponding account allocated.

Recording of the disposal of plant assets the company records the original plant assets at the original costs, less the calculated depreciation once the value is determined as a gain or a loss. An entry to the cash account and asset account are debited and credited.

To record the sale of plant assets the accountant similarly records the transaction to the disposal of plant assets where the sale amount is compared to the book value of the asset(s) and a gain or loss determined and recorded to the respective accounts.

week 2 DQ 1

What are the differences among valuation, depreciation, amortization, and depletion?

Is it appropriate to calculate depreciation using two different methods? Why?

What does the Annual Report you are using for class say about depreciation?

Depreciation, depletion and amortization are used as a basis to allocate the historical cost of an asset over its useful live in order to conform with the idea that earnings of the company are matched accordingly with relative expenses to include the wear and tear of the assets.  Depreciation is used with reference to tangible fixed assets because the permanent continuing and gradual fall in book value is possible only in the case of fixed assets.  Depletion is the allocation of a wasting asset’s depletable cost over the period where natural recourses are extracted and put into production such as oil, trees ECT.  Amortization in account is the allocation of an intangible cost or revalued mount minus its residual value over its useful life.  Depletion Expense and Amortization expense are similar to Depreciation Expense, as all three involve allocating the cost of a long-term asset to an expense over the useful life of the asset. There is no cash involved.

week 2 DQ 2

What types of industries have unearned revenue?

Why is unearned revenue considered a liability?

When is the unearned revenue recognized in the financial statements?


What does your Annual Report say about unearned revenue?

Companies often collect monies in advance of providing goods or services.  Examples of such companies are magazine publishers sell subscriptions and collect in full for the year before the magazine is sent, airlines sell tickets and receive cash before goods are delivered or services are rendered, and lawyers require retainers before services are provided and which create unearned revenues. The companies account for these unearned revenues as follows:

Which of the following is not an advantage of a corporation?

Which of the following is a disadvantage of a corporation

Week 3 - Reflection Summary

Learning Team Reflection Summary

Calculating stock, dividends, and stock splits

Stock is buying into ownership of a company. It is buying into their assets as well as their earnings. To calculate stock one must understand how to calculate the earnings per share. To calculate the earnings per share take the net earnings and divide by the outstanding shares.

Dividends are cash distributions that companies pay out regularly to shareholders from earnings. Profitable companies pay dividends. To calculate dividends for dollar amount take the number of owned shares and multiply by the dividend per share.

Stock split is increasing the number of outstanding shares that is owned by dividing each share. Each stockholder receives an additional share, but the value of each is reduced by half. Two shares equal the original value before the share split took place. The calculation of stock splitting is very complicated. 

Differentiate types of stocks issued by corporations.

week 3 DQ 1

Why does a company choose to form as a corporation?

What are the steps required to become a corporation?

What are the advantages and disadvantages of the corporate form of doing business?

Regardless of their size, all businesses can benefit from incorporating.  Corporations are separate legal entities (business structures) that enjoy certain protections under the law and important benefits. Most people form a legal business structure to safeguard their personal assets.

The steps to starting a corporation are the following Have a unique corporate name to avoid trademark problems that might ensue in the future, have the corporation’s headquarters in your home state. It’s always cheaper and easier to process applications if you choose your home state as your headquarters or main office, choose a type of corporation, identify what is the best type of corporation for your business: be it LLC, C corporation, or S corporation, Name the corporate directors. Make sure that you can appoint directors to fill the key vacant positions before you file your Articles of Incorporation and By-Laws to the SEC, choose your kind of share. Corporations usually sell either common or preferred stock. Select the best and most suitable for your situation, Have a Certificate of Corporation. This will prove that your incorporation is legal. You can obtain it from the local state office, and Process your Incorporation. This is usually the longer and more difficult part. But your lawyer can do this work for you. Incorporation is usually filed to a registered agent.

week 3 DQ 2

Why is preferred stock referred to as preferred?

What are some of the features added to preferred stock that make it more attractive to investors?

Would you select preferred stock or common stock as an investment? Why?

Provide stock details from your Annual Report. 

Preferred stocks are "preferred" because they have preference over common stock to receive dividends and company assets if the business is liquidated. If a company does not have enough cash to pay dividends to both the preferred shares and the common shares, the preferred shareholders must be paid first. Companies issue preferred shares as a way to raise capital instead of borrowing money by issuing bonds. Most preferred stock is issued with a fixed dividend rate that the company must pay before paying any dividend to common shareholders. The majority of preferred stock issues do not have an expiration date, so the issuing company is not required to pay back the money raised as it would if it issued bonds.  Preferred shares can be issued with different features that make them more attractive to investors. Investors buy preferred shares primarily as income investment to receive the regular dividends. Although preferred have preference over common stock to receive dividends, preferred shareholders are behind bond holders to be paid. The value of preferred shares can be affected by both the financial condition of the issuing company and the current interest rate environment. Unlike bond holders, preferred share owners usually do not have the security of a maturity date when the face value of the investment will be returned. The dividend rate of preferred shares can be significantly better than many other investments.

Week 4 - Chapter 13 Practice - Quiz 1

Week 4 - Chapter 14 Practice - Quiz 1

Week 4 - Reflection Summary

 Reflection Summary Assignment

Name

ACC 291 / Principles of Accounting II

Date

Instructor Name

Apply ratio, vertical, and horizontal analyses to financial statements

     Ratio analyses are used by companies to gather information in a company’s financial statement. Ratios and numbers from a company’s current year are compared to previous years and sometimes even the economy to judge the company’s performance. There are several ratios such as profitability ratios, liquidity ratios, activity ratios, leverage ratios and market ratios that can be used to calculate financial information. In vertical analyses, each entry of the assets, liabilities and equities in a balance sheet is represented as a proportion of the total account of the financial statement. In horizontal analysis a company’s ratios are compared in the financial statements over a period of time. Horizontal analysis can be used from revenues to earnings per share.

Prepare a statement of cash flows using both direct and indirect methods.

     When preparing a statement of cash flows, there are two different methods that can be used; there is the direct method, and there is also the indirect method. The direct method shows operating cash receipts and payments, making it more consistent with the objective of a statement of cash flow, while the indirect method adjusts net income for items that do not affect cash. The FASB allows both methods to be used because in the end the results of the total amount for net cash provided by operating activities arrive in the same way.

week 4 DQ 1 

Why are companies required to prepare a statement of cash flows?

Why is the statement of cash flows divided into three sections?

What does each section tell you about the operations of a company?

What are the differences between the direct and indirect presentation of cash flows?

Why does the Financial Accounting Standards Board allow both methods? Which do you prefer? Why?

The statement of cash flows shows exactly how a company used its cash. Net income can sometimes be a distorted figure and to best understand whether a company can continue to fund its operations creditors and investors prefer the statement of cash flows.

By classifying the statement of cash flows into three sections it is easy to see where the cash is most used. This will help the company as well as investors and creditors understand if the cash is being used in the most appropriate and effective manner.

Exercise E11-15