ACC-250 DQs

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Grand Canyon University *

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Accounting

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Feb 20, 2024

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ACC-250 DQs Topic 1 DQ 1 5.00 Identify your major and share your career goals with the class. How do you think you will use accounting information in your future? Participate in follow-up discussion by adding to classmates' posts about how accounting may be useful to them in the future based on their original posting. Before the class, I was excited that I was about to start my first accounting course. However, after reviewing the class planner on Sunday, I was timid about the weekly tasks, some more extensive than others. Reading the post by Dr. Almy and watching the tutorial videos has eased some anxiety. I do believe how extensive this course will be and procrastination will impact my desire grade. Here at GCU, my major is a Bachelor of Science in Accounting. My career goal is to obtain an accounting position within the government sector and receiving certification as a Certified Public Accountant (CPA). As I take this journey, I am unsure of which accounting position I would like to hold, but I am willing to start as a journey low-entry position and navigate my way through other positions or positions. The difficult part is getting your “foot” in the door of a government sector workplace. I will continue to use the accounting information in my future to reach my career goal. This course will teach me the accounting cycle and construct financial statements while following GAAP regulations. The ability to use the terminology to explain the financial statements and the importance of accounting. Also, other areas that I may not have been familiar with within the accounting system. Not only will I use accounting in the future, but I will also use it now in my current position of Human Resources/Payroll Administrator. Topic 1 DQ 2 5.00 Because accounting is considered the language of business, it may be difficult to think there is a relationship between accounting and faith; however, the Christian worldview should and can permeate every discipline, even accounting. In what way(s) do you think the Christian worldview can integrate with accounting? Participate in follow-up discussion by critiquing the posts provided by your classmates and/or defending their challenges to your post. It is was interesting to learn that accounting is considered the language of business and has its own set of terminology that managements or executives use to communicate the company’s financial status. The financial statements tell the story of how a company is doing financially, which allows owners or management to make decisions on the business. On the other side, it allows outsiders like investors or creditors to determined if they want to invest or give loans to the company. It was challenging to think that there is a relationship between accounting and faith. However, the Christian worldview can be integrated with accounting to be trustworthy, not corrupted, or negligent, and faithful. The person working in the accounting position would be a person of integrity in accordance with the truth. The Christian worldview and accounting can be intertwined to present a faithful presentation that provides relevant information that is complete, neutral, and free from error (Miller-Noble et al., 2017). To professionally and ethically execute accounting standards that prevent fraud, cheat, or scandal. The ability to provide relevant information and faithful representation gives a snapshot of an ethical business trustworthy to investors or creditors. It shows honesty within the person completing the accounting reports and showing that the business acts in good faith without the desire to defraud. Miller-Nobles, T., Mattison, B., & Matsumura, E. M. (2017). Horngren's accounting, the financial chapters, student value edition plus MyLab Accounting with Pearson eText (12th ed.). Upper Saddle River, NJ: Pearson. ISBN-13:9780134486789 Topic 2 DQ 1 5.00 In the last topic, we learned about different forms of business organization. If you were to open a business, how would it be organized? Identify the type of business you might start and why you would choose that form of organization. Participate in follow-up discussion by adding pros and cons to your classmates' posts about the form of business they discussed in their post.

I have not thought about opening a business of my own. If so, I would organize my business as a sole proprietorship. I would provide accounting and consulting services. My business would serve the public and private entities. Within accounting services, I would offer services such as auditing, bookkeeping, tax preparation for individuals or companies. Consulting services would consist of helping companies navigate tax laws, ensure compliance, or determined what type of accounting services are needed. A sole proprietorship organization would be best for my company because it would be a small business with one owner and the ability to terminate at my choice. Being the owner, I would be personally responsible for the company’s debt as it would not be a separate taxable entity, I would be paying tax on my earnings (Miller-Nobles et al., 2017). Miller-Nobles, T., Mattison, B., & Matsumura, E. M. (2017). Horngren's accounting, the financial chapters, student value edition plus MyLab Accounting with Pearson eText (12th ed.). Upper Saddle River, NJ: Pearson. ISBN-13:9780134486789 Topic 2 DQ 2 5.00 Proverbs 11:1 states, "A false balance is abomination to the Lord; but a just weight is his delight." A false balance means a false scale. How might this verse relate to the discussion of applying godly principles to our vocation? Participate in follow-up discussion by adding additional information in support of or in disagreement to their reasoning. Remember to use a professional tone. The bible virtue, Proverbs 11:1 can relate to applying godly principles to my vocation. Having a false balance is an abomination of God which cheating on weights will cause trouble in business dealings. God will be displeased from dishonesty. A just weight is God's delight because honesty is expected and appreciated in business dealings. Therefore, we must have a balance and the ability to apply those qualities would allow me to be a person with prosperity. Being honest, fair, and right within my vocation of accounting. God is perfect and as an image of God, he expects me to be perfect just like him. We shall not cheat, as cheating can cause ruins in our profession. God wants us to be honest in our dealings, if so, God will bless us. Topic 3 DQ 1 5.00 In your own words, describe each of the four financial statements. Go online and find the most recent set of financial statements for a publicly traded company that you are interested in, and explain what you learned about that company from exploring its financial statements. Participate in follow-up discussion by comparing your company to that of a classmate. Financial statements are reports used by businesses to convey information to make corporate decisions (Miller-Nobles et al., 2017). The income statement, also known as statement earnings, the corporate’s revenues, and expenses for a period can indicate a net income or net loss. Only two types of accounts, revenues, and expenses are presented in the income statement. For a certain period, the statement of owner’s equity provides the ups and downs in the capital for the business. The statement of financial position, known as the balance sheet, is considered the snapshot of the business that reports the assets, liabilities, and owner’s equity for a specific period allowing the external audience to evaluate the overall health of a business (Miller-Nobles et al., 2017). Transactions that only involved cash are reported on the statement of cash flow for a period that presents the cash inward and outward. Amazon.com, Inc. a public trade company that I was interested in. The company annually files Form 10-K to the United States Securities and Exchange Commission about their financial performance that includes audited financial statements (Securities and Exchange Commission, 2019). Amazon’s fiscal year ended was December 31, 2019. The year ended was reported and compared to the previous two years. The balance sheet compares only to the prior year. It was interesting that each year-end the company’s statement of cash flows, statements of operation, income statement, and balance sheets increases. For instance, on the balance sheet, the total assets for 2018 were $162,648 (millions) compared to 2019 was $225,248 (millions). On December 31, 2019, with total liabilities of $87,812 (millions). An interesting factor that was stated on Note 6 – Debt, as of December 31, 2019, Amazon has $23.3 billion of notes payable with interests at

a total of (13) notes payable with one of the notes being the highest interest of 4.950%. Does this mean that Amazon’s debt can be a potential risk? Miller-Nobles, T., Mattison, B., & Matsumura, E. M. (2017). Horngren's accounting, the financial chapters, student value edition plus MyLab Accounting with Pearson eText (12th ed.). Upper Saddle River, NJ: Pearson. ISBN-13:9780134486789 Securities and Exchange Commission. (2019). United States securities and exchange commission form 10-K. U.S. Securities And Exchange Commission. Retrieved from https://www.sec.gov/Archives/edgar/data/1018724/000101872420000004/amzn- 20191231x10k.htm#sA9407C5F158550848FF0ECFE887925DE Topic 3 DQ 2 5.00 We are learning in this topic about adjusting entries. If our business affairs are to be conducted in a godly manner, we could consider Luke 16:12: "And if you have not been trustworthy with someone else's property, who will give you property of your own?" Think about this verse, and explain how this might be applied to the topic of adjusting entries. Participate in follow-up discussion by comparing your application of Luke16:12 to that of a classmate. Adjusting entries usually are done at the end of the accounting period to record revenues that are earned and expenses that occur for the accounting period (Miller-Nobles et al., 2017). Also, updating assets and liability accounts. It is needed to be able to properly measure areas such as net income on the income statement or assets and liability on the balance sheet (Miller-Nobles et al., 2017). If adjustments are not made it can impact the net income and owners' equity being overstated and expense plus liability being understated or vice versa. The verse Luke 16:12, “ And if you have not been trustworthy with someone else’s property, who will give you property of your own?” , can be applied to adjusting entries. In our eBook, under the section Ethics, “When should accrued expenses be recorded?”, gave an interesting scenario of the business. A business owner instructs the worker not to record the adjusting entries of the accrued expenses because he will be applying for a bank loan. The owner did not want to show higher liabilities on the balance sheet and net loss on the income statement as a result of the adjusted expenses. Therefore, the financial statements would not honestly and accurately represent the overall health. The bank can assume that the financial statements are accurate and give the owner a loan. Things can change that impact the owner’s ability to repay the loan. How can the bank trust the owner with their property if the owner is not trustworthy with his own by failing to record all adjustments? Topic 4 DQ 1 5.00 What is the closing process, and why is it necessary after preparing financial statements? Include temporary and permanent accounts in your discussion. Consider using an example of a real company to discuss why the closing process is a necessary step in the accounting cycle. Participate in follow-up discussion by comparing the accounts you used in your posts with those of a classmate's post. The closing process occurs at the end-period that comprises of journalizing and posting closed entries of revenues, expense, and withdrawals account to zero for the next period while updating the net income or loss of the Owner, Capital account (Miller-Nobles, 2017). It is necessary to complete the closing process after preparing the financial statements which report the business financial health for a certain period. For instance, the income statement reports net income or loss that hold temporary accounts, known as nominal accounts, such as revenues and expenses which will be reset to zero at the year-end. It measures the net income or loss of the business for that end-period and not intertwined with the revenues and expenses of the following year. Real accounts or permanent accounts such as assets, liabilities, and capital are permanent accounts that will not reset at the year-end and roll over to the next year. For example, at the construction company that I work for, my coworker in the accounts payable “closes the books” monthly and year-end. The allows the executive management of the company to evaluate the net income or loss and expenses not only monthly but at the year-end. It provides consistent reporting of the financial health of the company to allow the executive management to make business decisions. Each end month the executive management has a visual of

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the outcome of the revenues and expenses or compared it the previous month. I notice the when revenues exceed the expense the president gives out a bonus to the administration team. Miller-Nobles, T., Mattison, B., & Matsumura, E. M. (2017). Horngren's accounting, the financial chapters, student value edition plus MyLab Accounting with Pearson eText (12th ed.). Upper Saddle River, NJ: Pearson. ISBN-13:9780134486789 Topic 4 DQ 2 5.00 The Bible in Luke 14:28 says, “Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it?” How do you think this verse might apply to this chapter on closing entries? Where do you see the connection between doing closing entries and whether a company should proceed with a business venture? Participate in follow-up discussion by critiquing your classmates' posts and/or defending their challenges to your post. The bible virtue in Luke 14:28 (New International Version), “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” . can be applied to this week’s chapter on closing entries. Without counting the cost, how would one know the financial health of business to evaluate operations or make proper decisions. A business owner who does not follow the closing process will not be able to evaluate the financial health of the business to determine if the business is struggling or excelling (net income or loss). An outcome of a net income will show the business owner that the company is flourishing into the next month or year. A net loss will reveal that company surpasses in expenses than revenues which shows a loss. Counting the cost will allow the business owner to make the decision to either proceeded with the further business venture or retreat. BibleGateway. (n.d.). Retrieved from https://www.biblegateway.com/ Topic 5 DQ 1 5.00 Explain the difference between the FIFO and LIFO inventory costing methods. In a period of rising prices, which method would result in a higher net income and why? Why might a company choose the method that would result in a lower net profit? Participate in follow-up discussion by discussing which inventory method you would recommend and why . First-in, first-out (FIFO), and last-in, first-out (LIFO) are two out of the four inventory costing method used to assign a unit cost for each inventory item by computing ending inventory and cost of goods sold (Miller-Nobles, 2017). The FIFO inventory method would be based on the oldest purchases that the first unit coming in would be the first unit sold. Considering the opposite of FIFO, the LIFO inventory method consists of the last units in are the first to be sold. FIFO and LIFO's difference is that FIFO sells the oldest inventory first and LIFO sells the newest inventory first. The FIFO method results in higher net income due to lower cost of goods sold and higher gross profit, which causes higher net income during the rise of prices (Miller-Nobles, 2017). A higher-income profit appeals to investors and borrows. Then a company might choose a lower net profit like the LIFO inventory method that shows the lowest profit resulting in lower taxable income, which saves cash by paying lower taxes. Topic 5 DQ 2 5.00 In the book of Genesis, we see that God directed Joseph to save for the future. The Lord gave Joseph the interpretation to Pharaoh’s dream. There would be seven good years followed by seven years of famine. Joseph advised gathering all the excess grain that would be harvested during the good years to be able to carry the entire nation of Egypt through the seven years of famine. How can you apply what we have learned about inventory in this topic to this biblical story? Participate in follow-up discussion by adding additional information in support of or in disagreement to their reasoning. Remember to use a professional tone. Not being a business owner, it was difficult to apply this week's topic about inventory with the biblical story of the seven years of famine. My interpretation of Pharaoh’s dream recounted by Joseph gather enough grains and developed a system to get the nation through the years of famine. During the good years, grains were gathered and to last through

seven years of famine. The grains are counted for and inventory to reassure that the entire nation survives through the famine years. Therefore, applying the biblical story to this week's topic about inventory would relate to the accounting principles and controls. Ensuring that the business is consistent with its inventory method to prevent inventory shrinkage or shortage. The lack of merchandise inventory can impact the function or life of the business. For instance, throughout the seven years of good harvest Joseph developed a stockpiling system to store the grain for the upcoming years of famine (Theology of Work, N.d.). As the start of the famine years Joseph provided enough grains to bring the nation through the drought. For grains to remain good through the years of famine, Joseph could have been utilizing the FIFO (first-in, first- out) inventory method. The oldest grains that were gather first would be the first grains to be sold to nation. Selling the oldest grains will avoid worthless inventory where the oldest grain can go bad and the nation will not be able to use it. Business owners must implement a consistent accounting principle for merchandise inventory. The lack of utilizing a merchandise inventory system can impact the life of the business. If Joseph did not develop a system would the nation survive through the seven years of famine? Theology of Work. (N.d.) Joseph’s successful management of the food crisis. Retrieved from https://www.theologyofwork.org/old-testament/genesis-12-50-and-work/joseph-genesis-372-5026/josephs-successful- management-of-the-food-crisis-genesis-4146-57-4713-26 Topic 6 DQ 1 5.00 In the real world of business, not all customers pay the balance they owe from purchases they made on account. Some customers' accounts receivable become uncollectible and must be written off by the company. Explain the two methods of accounting for uncollectible accounts. Which method is required by GAAP? Explain why. Participate in follow-up discussion by adding an example or additional details to enhance your classmates’ post. Direct write-off and allowance method are two accounting method for uncollectible receivables that must be recorded as an expense (Miller-Nobles, 2017). Direct write-off methods are commonly used by small, nonpublic companies. Once the determination of never collecting from a certain customer, within the direct write-off method the Bad Debt expense account will be debited. Under the allowance method which is based on the matching principle that bad debt expense would be recorded as the same period of the sales revenue (Miller-Nobles, 2017). The offset will be in a contra account crediting the Allowance for Bad Debts account. The allowance method for uncollectable receivables is the method that is required by GAAP due to its adherence to the matching principle. Miller-Nobles, T., Mattison, B., & Matsumura, E. M. (2017). Horngren's accounting, the financial chapters, student value edition plus MyLab Accounting with Pearson eText (12th ed.). Upper Saddle River, NJ: Pearson. ISBN-13:9780134486789 Topic 6 DQ 2 5.00 Corporations, in general, aim to make a profit. Yet, the term "profit" can invoke a negative connotation for many people, as it is sometimes equated with greed. Would you consider profit to be antithetical to the teachings of the Bible and Christ? Explain your reasoning. Participate in follow-up discussion by adding ideas about how a business can be profitable, yet not contradict biblically based ethical principles. Personally, I do not consider profit to be antithetical to the teaching of the Bible and Christ. Profit can be considered that one and a company used resources more efficiently than others which resulted in lower cost and higher profit. By making good and efficient use of resources relates to Genesis 1:28 (NIV) by being fruitful and multiply, fill the earth and subdue it in whichever God had entrusted in you. Also, in the bible virtue Proverbs 31:15 (NIV), “ She considers a field and buys it; out of her earnings she plants a vineyard”. Looking at the field and deciding if it would be a sensible buy. She buys, manages it well, and produces a profit. However, if one earns a profit and falls into the temptation of sin then profit would be antithetical. We are all worthy of God’s grace, be truthful, and faithful. BibleGateway. (n.d.). Retrieved from https://www.biblegateway.com/

Topic 7 DQ 1 When a company decides to finance a new project, they can either borrow money via bonds or issue stock. What are the advantages and disadvantages of each option? Explain your reasoning. Participate in follow-up discussion by adding different reasons why you think debt or stock is the better choice to generate cash. A company looking into financing a new project can either borrow money by bonds or issue stock; however, there are advantages and disadvantages. The disadvantages of bonds can lead to a company’s inability to pay off the bond and related interests. For instance, a $500,000 of 10% interest on the bond can have a total cost of $50,000 compared to stock with no interest expense. Lower-income tax expenses are one of the advantages of borrowing from bonds verse issuance of stock. The new project's net income under the issuance of stock can be higher than the bonds, but the earning per share can be lower because the earnings must be shared with more shareholders. No matter if a company is making a profit or not the debt must be paid. Companies can face low cash flow within unprofitable years and still required to make the interest payment. It can lead to defaulting on the debt because interest payment cannot be paid without the money to pay, which can cause a company to declare bankruptcy. Topic 7 DQ 2 If you take any personal financial classes, you will more than likely hear and be warned about keeping out of debt. For instance, Proverbs 22:7 says, "The rich rules over the poor, and the borrower is servant to the lender." Yet, from an accounting perspective, the balance sheet incorporates liabilities (debts) and is part of the accounting equation. If you wanted to run your business according to godly principles, how could you balance this with the idea of borrowing money to start a business or to grow a business? Participate in follow-up discussion by critiquing your classmates' posts and/or defending their challenges to your post. In the bible virtue Roman 13:7-8 (NIV), “Give to everyone what you owe them: if you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.” A business should run according to godly principles when it is planning to borrow money. As well, for someone who is trying to start a business. The debts are stated on the balance sheet and part of the accounting equation to allow the business an overview of the financial position. If the company's debts exceed its assets can be a potential risk, showing that the company may default on its obligations that can lead to bankruptcy. At times, borrowing comes with interest which paying back will be more than what was borrowed. It is important that if one is trying to start a business or grow its business to avoid unnecessary debt do not borrow what cannot be repaid. BibleGateway. (n.d.). Retrieved from https://www.biblegateway.com/

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