Discussion Questions: Chapter 7 & 8 : Intermediate Accounting
Please answer each question individually in at least 120 words per.
1. Why is it important to have effective control of cash?
2. What are the basic issues involved with the valuation of receivables?
3. Which cost flow assumption gives you the highest ending inventory? Why?
4. Could inventory errors be self-correcting? Why or why not?
5. How can different accounting methods impact an organization’s net income?