ashford ACC310 Week 1 - Discussion

Accrual accounting matches revenue with expenses, however accruals can be used to manipulate income and expenses. In the Forbes Magazine article, “Cash Doesn’t Lie,” written by Daniel Fisher, the author discusses the use of negative accruals, changes to estimates and recognizing income before it is earned. Read the article and then:

a. Discuss the use of each of these three techniques and their effect on current and future earnings reporting.

b. How should changes of accounting estimates that significantly affect income be reported? Should they be regarded as a change in accounting principle?

c. Research revenue recognition and discuss the accounting rules violated that brought down the company Sunbeam.

Week 1 - Discussion 2

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Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

Fundamentals of Cost-Volume-Profit Analysis

Complete Question 3-16 and Exercise 3-33. Respond to at least two of your classmates’ postings.