Discussion Question One:
Most companies do their accounting with computer software programs. Research a technical computer or accounting or business magazine for their most current list of the best accounting software programs. Describe and compare their top four programs for their features, advantages/disadvantages, and costs. Which one would you use if you were starting a small retail store and why?
You own an automobile parts company and have been approached by a leading car manufacturer to supply parts to the company. How would you determine that the car manufacturer has a good record of servicing sales and paying its suppliers? What are the signs you would look out for in the financial statements for the possibility of bad debts? What are the advantages and disadvantages of allowing customers to make purchases on credit?
Inventory is a critical asset for retailers. Retail firms are at risk that their inventory will become obsolete.
- What does obsolete mean?
- Talk with a local retailer in your area and tell us about what they say they do to minimize this risk?
- Describe how they should account for the loss from that obsolescence.