Financial Accounting and Reporting – Business Environmental Concepts
Generally accepted accounting principles (GAAP) are a set of rules and practices, having substantial support, that are recognized as a general guide for financial
reporting purposes. Publicly owned corporations are required to include in their annual reports a description of the accounting principle that they followed in the
preparation of their financial statements. Once the company adopted an accounting principle, the principle must be followed in a consistent basis.
Please do a preliminary research and discuss the following questions:
Discuss the objectives of the consistency standard.
Select 2 companies in the same industry, and use the Internet to find their current balance sheets. Then, discuss what is disclosed in the footnotes of the financial
statements in regard to the accounting principles on inflation.
Based on your study of the two companies balance sheet, which company has better financial position and why.
Define GDP and GNP. What do they measure, and how does this impact the organization?
Discuss the role of the Fed on the national economy, and how does this impact the organization?
Share with the class what you have found. Do not use the companies that one of your classmates has used.
In your own words, post a substantive response to the Discussion Board question(s) and comment on other postings. Your response should address the DB question(s) and
move the conversation forward. You will be graded on the quality of your postings, including mastery of the concept as well as critical thinking. If asked for your
opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your
position on the questions or comments.
Grading Criteria
Discuss the objectives of the consistency standard.
15%
Select 2 companies in the same industry, and use the Internet to find their current balance sheets. Then, discuss what is disclosed in the footnotes of the financial
statements in regard to the accounting principles on inflation.
30%
Based on your study of the two companies balance sheet, which company has better financial position and why?
15%
Define GDP and GNP. What do they measure, and how does this impact the organization? 10%
Discuss the role of the Fed on the national economy, and how does this impact the organization? 10%
Share with the class what you have found. Do not use the companies that one of your classmates has used. 10%
Substantive responses to students posts (at least two replies) 10%
TOTAL 100%
For assistance with your assignment, please use your text, Web resources, and all course materials.
Background on Course Research Requirements
In the business world, it is important to use research to strengthen points that you make in your presentations and projects. You will see references to using specific
databases throughout this course. Research is a crucial skill, and learning to use the search functions in these databases is about critical thinking, which
complements other research techniques that you have used prior to the class.
There are two main types of databases accessible in the library, through “Find articles and books.” Keep in mind that the most popular databases are: ABI Inform
Global, Academic Search Premier, and Business Source Premier. As a graduate student, you must move away from utilizing inferior Web sites with anonymous writers,
articles found on consultant Web sites, and materials on sites like QuickMBA.com or MarketingProfs.com. Also, dictionaries and encyclopedias most often repeat the
information from your text. Acceptable Internet resources include, among others, government sites (especially for statistics). You are not permitted to use Wikipedia
or any open source Web site for this course.
