Accounting 3/4/5

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3

  • Distinguish between the fundamental aspects of cash-basis accounting and accrual-basis accounting. Of the two (2), suggest the method that is more useful to creditors. Justify your response.
  • Imagine that you work for an organization that uses the accounting worksheet for internal purposes only. Speculate on the main reasons why management would use the accounting worksheet for internal purposes only. Recommend to management reasons why the worksheet should become a permanent accounting record. Explain the rationale behind your recommendation.

4

  • create one (1) argument to support the use of a two-step approach over the single-step approach when reporting comprehensive income. Support your response with specific examples that illustrate why the two-step approach is more beneficial than the single-step approach.
  • Differentiate between a multi-step income statement and a comprehensive income statement, and suggest which income statement is more useful to investors and creditors. Provide a rationale for your suggestion.

5

  • describe the fraud that had occurred, and suggest the primary way in which the parties involved could have prevented the fraud in question.
  • imagine that you are an investor in the company that you have researched. Give your opinion on whether you would continue to invest in the company or whether you would sell your company stock. Explain your rationale.

 

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