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First Year Accounting Activities |
| Chapter 1 As you begin your career, many of you will decide to start your own business, much as Barbara Treviño did in Chapter 1. Starting a business is no small undertaking. There are many things to consider, such as the type of business to open, the legal aspects, and the characteristics needed to be a successful business owner. The U.S. Small Business Administration provides a web site to help you plan your business. 1. What questions should you ask yourself if you are thinking about
starting your own business? How would you answer these questions? |
| Chapter 2 In the Explore Accounting feature, you learned that revenue should be counted as revenue when it is earned, regardless of when the cash is received. That is, if cash is collected before a product is delivered or a service is provided, then revenue should not be recognized until the promised action has been completed. Consider how this affects airlines. 1. Almost everyone pays for airplane tickets before
they actually take a flight. Should an airline recognize the flight
revenue when it collects the money or when the actual flight takes
place? |
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Chapter
3 1. On which tax form does the owner of a proprietorship report net income of the
business? |
| Chapter 4 In the Accounting At Work feature, it was mentioned that Mary M. Witherspoon is a district vice-president of the American Business Women's Association (ABWA). The ABWA's mission is "to bring together businesswomen of diverse occupations and to provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support and national recognition." 1. When was the ABWA founded? |
| Chapter 5 In the Cultural Diversity feature, accounting in ancient civilizations is described. Timothy Gillis, Associate Professor of Accounting at Quinebaug Valley Community-Technical College in Connecticut, has done much research on the history of accounting. He displays an accounting history timeline at the URL listed below. www.qvctc.commnet.edu/QVCTC/brian/QVHTMLS/ACCOUN/acop2.gif 1. According to the timeline, what was the first form of accounting? |
| Chapter 6 Many of you will soon open a checking account, if you haven't done so already. In doing so, you will need to choose a bank which offers services that meet your needs. Provident Bank, with locations throughout Ohio and Florida, offers many traditional as well as innovative banking services. 1. Provident offers five types of checking accounts, some requiring you to maintain a
minimum monthly balance of a certain amount. Why might banks require this minimum balance? |
| Chapter 7 The Global Perspective feature explains the use of two measurement systems in the United States: the customary system and the metric system. The United States is one of the few major industrial countries that do not use the metric system exclusively. The U.S. Metric Association (USMA) is a national nonprofit organization that advocates U.S. conversion to the metric system. http://lamar.colostate.edu/~hillger/ 1. Who was the first person to propose a decimal-based measurement system for the
United States? When was this proposed? |
| Chapter 8 As explained in the Explore Accounting feature, a corporation that trades its stock on a U.S. stock exchange must submit an annual report to the Securities and Exchange Commission (SEC). The SEC maintains on online database of these reports, called EDGAR (Electronic Data Gathering, Analysis, and Retrieval). You can search the EDGAR database to find the financial statements of a company simply by typing in the company's name. Search the EDGAR archives for The Coca-Cola Company's most recent annual (10-K) report. 1. Who is Coca-Cola's Chief Executive Officer (CEO)? Give a brief description of his or
her experience with Coca-Cola. |
| Chapter 9 In the Explore Accounting feature, you learned about public accounting firms. The five largest public accounting firms, known as the "Big 5," include Arthur Andersen, Deloitte & Touche, Ernst & Young, KPMG Peat Marwick, and PricewaterhouseCoopers. You can learn more about these firms by browsing their web sites. Go to the PricewaterhouseCoopers site now. 1. PricewaterhouseCoopers was formed by the consolidation of two large public
accounting firms in 1998. Who were the two firms? |
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10 A merchandising business purchases and sells goods. A retail merchandising business sells to those who use or consume the goods, while a wholesale merchandising business buys and resells merchandise to other merchandising businesses. One of the largest retail merchandising businesses in the world is Wal-Mart, which started as a small five-and-dime store in rural Arkansas. 1. How many Wal-Mart stores are there today? How many people does Wal-Mart employ? |
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11 In this chapter, you learned about credit card sales. Major bank-approved credit cards include VISA, MasterCard, and Discover. Visit VISA's web site to learn more about its products and services. 1. How long have credit cards been a viable method of payment? |
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12 Not long ago, businesses did all of their accounting work manually. Accounting has changed dramatically over the last twenty years, with the advent of personal computers, accounting software, and other technologies. One of the most popular accounting software programs today is QuickBooks. 1. What are some accounting processes that QuickBooks automates? |
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13 Social security tax is a federal tax paid for old-age, survivors, and disability insurance. Social security taxes are paid by both employees and employers. Social security tax is calculated on employee earnings up to a maximum amount paid in a calendar year (known as a tax base). 1. When was the social security program established? What was the purpose of
establishing it? |
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14 The Internal Revenue Service (IRS) provides a helpful web site for both individuals and business owners who are required to file federal taxes. The site includes information on tax regulations, answers to frequently asked questions, and downloadable tax forms and instructions for completing them. 1. Who is the current commissioner of the IRS? |
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15 In this chapter, you learned that the amount of goods on hand is called inventory. You also learned that the amount of goods on hand for sales to customers is called merchandise inventory. A retail merchandising business, such as OfficeMax, may have a significant amount of merchandise inventory. Go to the OfficeMax web site and find its most recent annual report 1. Look at the balance sheet for OfficeMax. How much merchandise inventory did
OfficeMax have for the most recent year? |
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Chapter
16 Founded in 1978 in Atlanta, Georgia, The Home Depot is North America’s largest home improvement retailer. The Home Depot currently operates in 43 U.S. states and 5 Canadian provinces, with plans to expand into Puerto Rico and South America. Locate Home Depot’s most recent financial statements on its web site.
1. What was Home Depot’s operating income for the most recent year? |
| Chapter 17 In the Small Business Spotlight feature, you learned about franchises. A franchise is the right or license granted to an individual or group to market a company's goods or services in a particular territory. You can learn more about franchises by visiting The Franchise Handbook Online. 1. What are some of the franchises you can learn about on The Franchise Handbook Online
web site? |
| Chapter 18 In this chapter, you learned about list prices and trade discounts. A list price is also known as the manufacturer's suggested retail price. You can find the list prices for most models of new and used cars on the Kelley Blue Book web site. 1. What is the suggested retail price for a new four-door Honda Civic DX? |
Chapter 19 Recording Sales and Cash Receipts The International Chamber of Commerce (ICC) promotes international trade, investment, and the market economy system worldwide. It makes rules that govern the conduct of business across borders and provides many services to international businesses. 1. How many members are in the ICC? |
| Chapter 20 Safeway is the third-largest food and drug chain in the United States, behind only Kroger and American Stores. To maximize profits, large retailers like Safeway, Kroger, and American stores must monitor their uncollectible accounts. Go to Safeway's web site and locate its annual report. 1. Assume that Safeway estimates that 0.6% of its total sales on account will be
uncollectible. What would be Safeway's estimated uncollectible accounts expense for the
most recent year? |
| Chapter 21 In the Explore Accounting feature, you learned about accounting for leases. A lease that is accounted for as a rental is known as an operating lease. A lease that is accounted for as a purchase of an asset is known as a capital lease. Locate the most recent annual report for Federal Express on its web site. 1. Locate the notes to the financial statements. What rent expense was associated with
operating leases for the most recent year? |
| Chapter 22 With over 285 stores in 32 states and annual revenues of over $8 billion, Best Buy is the #1 consumer electronics and appliance specialty retailer in the United States. Go to Best Buy's annual report on its web site to learn more about Best Buy's merchandise inventory. 1. What amount of merchandise inventory did Best Buy report on its most recent balance
sheet? |
| Chapter 23 As you continue your education and begin your career, you will most likely need to take out a loan for college, a car, or your first home. When taking out a loan, it is wise to shop around for the best interest rate. The Internet is a good place to research current interest rates. BanxQuote Banking, Mortgage, and Finance Center offers such information. 1. What is the current interest rate for a 36-month loan on a new automobile? |
| Chapter 24 In the Explore Accounting feature, you learned about the parts of an annual report. The first section of an annual report is devoted to management's analysis and discussion. This section provides management with an opportunity to promote the corporation. The second section of an annual report contains the financial statements, notes to the financial statements, auditor's report, and financial analysis. Find McDonald's annual report on its web site. 1. Summarize the Letter to Shareholders. Was the message in the letter positive or
negative? |
| Chapter 25 An owner of one or more shares of a corporation is called a stockholder. Dividends are earnings distributed to stockholders. CNN's Financial Network devotes a section of its web site to the stock market. 1. What is the stock symbol for Disney? When did Disney last pay a dividend? |
| Chapter 26 There are many ways to obtain the annual report for a corporation. You can call, write, fax, or e-mail the company's investor relations department. Or you can download a copy of the annual report if it is available on the company's web site. Obtain a copy of Sears' most recent annual report from its web site. 1. Compute the component percentages for Sears' income statement, using total revenues
as the base for calculation. What do these numbers tell you? |
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Last Update: 09/19/2000
