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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? 2 dissn · 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 premium? 3 disscn · 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?

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?

 

2 dissn

· 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 premium?

 

3 disscn

· 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?

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