Week One Student Guide

This week, you learn about the financial accounting concept of accounting for receivables. Types of receivables, notes receivable, and statement presentation and analysis are covered. The assigned readings clarify the difference between tangible and intangible assets along with distinguishing between revenue and capital expenditures, and the entries associated with each.

This week, you gain insight into how companies recognize notes receivable and how the methods are used to value accounts receivable. This week, you also discuss the value of indicating how plant assets, natural resources, and intangible assets are reported.

Principle Assets

OBJECTIVE: Prepare journal entries to account for transactions related to accounts receivable and bad debt using both percentage of sales and percentage of receivables methods.

Resource: Ch. 8 of Financial Accounting

Content

• Ch. 8: “Accounting for Receivables”

o Types of Receivables o Accounts Receivable

• Recognizing Accounts Receivable • Valuing Accounts Receivable • Disposing of Accounts Receivable

o Notes Receivable

• Determining the Maturity Date • Computing Interest • Recognizing Notes Receivable • Valuing Notes Receivable • Disposing of Notes Receivable

o Statement Presentation and Analysis

• Presentation • Analysis

OBJECTIVE: Distinguish between tangible and intangible assets.

Resource: Ch. 9 of Financial Accounting

Content

• Ch. 9: “Plant Assets, Natural Resources, and Intangible Assets”

o Plant Assets

• Determining the Cost of Plant Assets • Depreciation • Expenditures During Useful Life • Plant Asset Disposals

o Natural Resources

• Accounting for Natural Resources • Financial