Select a merchandising company that interests you
Discussion post #1:
In your reading this week, you learned about merchandise inventory. Select a merchandising company that interests you and address the following points:
Discuss how the company could use accounting, technology, or data analytics to better manage and monitor their inventories.
Recommend one best practice that merchandisers can use to better control their inventories.
What is the effect on the cost of goods sold, gross profit, and net income if ending merchandise inventory is understated?
Discussion post #2:
In your reading this week, you learned about the accounting treatment for long-term assets, including plant assets. Under US GAAP, plant assets are presented on the balance sheet at historical cost less accumulated depreciation. Interestingly, under International Financial Reporting Standards (IFRS), companies are permitted to present their plant assets at fair market value.
In your posting, address the following points:
Discuss the advantages and disadvantages of the historical cost presentation under US GAAP compared with the fair market value presentation under IFRS.
Explain which approach you believe is better for financial statement users and why.
Explain the accounting process when you sell a depreciated asset.
Reference
Miller-Nobles/Mattison. Horngren’s accounting: The financial chapters (7th ed.). Pearson.
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