ACC205 week 1-5 DQ
week 1DQ 1: As you have learned in this weeks readings the Accounting Equation is Assets = Liabilities + Owners Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation.DQ2: what does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts? Please provide an example of how debits and credits impact accounts.week 2DQ 1 Accounting CycleFinancial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different companies have different accounting cycles? Would you expect the steps of the accounting cycle to be the same for each company? Why or why not?DQ 2 Bank ReconciliationWhat is the purpose of bank reconciliation? What are the reasons for differences between the cash reported in the accounting records and the cash balance in the bank statements? Analyze several of your peers posts. Let at least two of your peers know what happens to the discrepancies between the book balance and the bank balance. Could these differences just be written off?week 3Week 3 DQ 1.The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controllers bonus is based on the next income. It is the controllers belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods?Week 3 DQ 2A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100,000. Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?week 4DQ: 01What is a current liability? From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities? Based on your current experience as well as any additional research you may have done provide two examples of situations where businesses collect monies from customers and employees and reports these amounts as a current liability.DQ: 02A client comes to you thinking about starting a consulting business. Your client is specifically interested in what type of entity should be created for this new business. Based on your readings or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation. Based on these advantages and disadvantages provide a clear recommendation to your client.week 5ACC 205 Week 5 DQ: 01Ratios provide the users of financial statements with a great deal of information about the entity. Do ratios tell the whole story? How could liquidity ratios be used by investors to determine whether or not to invest in a company?ACC 205 Week 5 DQ 2Profit MarginYear Ending December 2012Year Ending December 2011Year Ending December 2010Revenues40,00035,00033,000Operating ExpensesSalaries15,00010,0009,000Maintenance and Repairs6,0009,00010,000Rental Expense2,5002,5002,500Depreciation2,0002,0002,000Fuel4,0003,5002,500Total Operating Expenses29,50027,00026,000Operating Income10,5008,0007,000Sales and Administrative Expenses6,0004,0003,000Interest Expense2,5002,0001,000Net Income2,0002,0003,000Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the profit margin for each of these years. Comment on the profit margin trend.