I suspect that most of us can view and appreciate most sports such as baseball, football, and basketball. What if you were to view a Cricket World Cup game? If you didn’t know the rules you probably would not have much fun. The same happens in business if you don’t understand its language – Accounting. What rules impact a business’ Accounting Information System? What types of compliance is required?
In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of Course Project. Let’s start with Exercise 1-17A. Read about Coffee Shop Doughnuts and select one of the four requirements to answer.
(Learning Objectives 3, 4: Apply the accounting equation; evaluate business operations) coffee Shop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million. Current liabilities are $170 million and long-term liabilities total $300 million. ▶Requirements 1. Use these data to write Coffee Shop Doughnuts’ accounting equation. 2. How much in resources does Coffee Shop have to work with? 3. How much does Coffee Shop owe creditors? 4. How much of the company’s assets do the Coffee Shop stockholders actually own?