Accounting and the Importance of Reading and Understanding Financial Statements
Discussion topic 1:
(This is an accounting capstone course)
Explain how you expect this course will help you move forward in your current or future career.
Your friend made this comment: "My major is biology and I plan to do research for cures for major illnesses. Therefore, I have no need to study accounting."
Define accounting for your friend.
Explain the importance of reading and understanding financial statements, and how your friend's research company could suffer should he or she hire an unqualified accountant.
Discussion topic 2:
Your office is on the 68th floor of your building. The CEO’s office is on the 77th floor. The two of you are waiting for an elevator one morning. The CEO states "Our prices are rising, and I want the lowest net income for tax purposes and the highest ending inventory for external reporting purposes."
Is this an ethically acceptable request?
What are the major features of each system? Explain why a physical inventory is necessary under both systems.
Discussion Questions
Student’s Name:
Institutional Affiliation:
Course Name and Number:
Instructor’s Name:
Due:
Discussion Questions
Discussion topic 1
1 Explain how you expect an accounting capstone course to help a student in their future career.
1 An accounting capstone course provides an opportunity for students to apply their accounting knowledge and skills to practical situations. As such, it can help students develop a range of skills that will be useful in their future careers. For example, students may learn how to analyze financial data, make informed decisions based on that data, and communicate those decisions effectively to stakeholders. Furthermore, they can develop skills in critical thinking, problem-solving, and collaboration, which are highly valued in the workplace.
2 Your friend made this comment: "My major is biology and I plan to do research for cures for major illnesses. Therefore, I have no need to study accounting." Define accounting for your friend.
2 Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information to stakeholders. This information is used to make informed decisions about the company's operations, investments, and financial performance.
3 Explain the importance of reading and understanding financial statements, and how your friend's research company could suffer should he or she hire an unqualified accountant.
3 For my friend, who is majoring in biology, it may seem unnecessary to study accounting. However, accounting is a vital part of any organization, including research companies. In this regard, the importance of reading and understanding financial statements for any organization cannot be overstated. Financial statements provide a summary of a company's financial position, performance, and cash flows. They help stakeholders evaluate the financial health of the company and make informed decisions about its ...