Week Two Discussion Questions 1
What are the differences among
valuation, depreciation, amortization, and depletion? Is it appropriate to
calculate depreciation using two different methods? Why?
Which depreciation method
provides you with the highest depreciation expense in the first year? Why?
What types of industries have
unearned revenue? Why is unearned revenue considered a liability? When is the
unearned revenue recognized in the financial statements?
Why do companies issue bonds?
Would you rather buy a bond at a discount or a premium rate? Why? What is the
determining factor of whether a bond is sold at a discount, face value, or
What is the straight-line
method of amortizing discount and premium on bonds payable? Provide an
explanation of the process.
How would you describe the
accounting procedures for notes payable and accounts payable?