Internet Activities

Chapter 1

Recording Departmental Purchases and Cash Payments

In the Cultural Diversity feature, you learned about professional accounting organizations such as The American Association of Hispanic Certified Public Accountants, The National Association of Black Accountants, and The Association of Asian American Attorneys and Certified Public Accountants. These professional organizations, as well as others like them, have web sites devoted to promoting their services.

www.aahcpa.org

1. When was the American Association of Hispanic Certified Public Accountants (AAHCPA) founded? What is its mission?

2. What are the requirements to apply for an undergraduate student scholarship from the AAHCPA?

3. What other professional accounting organizations have web sites?

Chapter 2

Recording Departmental Sales and Cash Receipts

Large retail merchandising businesses, such as Wal-Mart, have merchandise returned by customers every day. The customer may have received the wrong size, the wrong style, or damaged or unsatisfactory goods. The customer may return merchandise for a credit on account or a cash refund.

www.wal-mart.com

1. Wal-Mart's web site offers customers the opportunity to shop online. What is Wal-Mart's return policy for merchandise purchased online?

2. How would Wal-Mart record the return of an online sale?

3. What challenges might a retail merchandising business face by offering online shopping?

Chapter 3

Calculating and Reporting Departmental Payroll Data

The Fair Labor Standards Act (FSLA) establishes minimum wage, overtime pay, record keeping, and child labor standards that affect over 100 million full-time and part-time workers in the private sector and in federal, state, and local governments. You can learn more about the FSLA by visiting the U.S. Department of Labor's web site.

www.dol.gov

1. What is the current minimum wage?

2. What kinds of records are employers required to keep on wages, hours, and related payroll information?

3. If an employee earns minimum wage and works 48 hours in one week, what are the employee's earnings for that week?

Chapter 4

Financial Reporting for a Departmentalized Business

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.

www.franchise1.com

1. What are some of the franchises you can learn about on The Franchise Handbook Online web site?

2. What are the franchise fee and capital requirements associated with purchasing a Subway Sandwiches and Salads franchise?

3. How might the franchisee record the purchase of a franchise?

Chapter 5

A Voucher System

The American Institute of Certified Public Accountants (AICPA) is the national, professional organization for all Certified Public Accountants. Its mission is to provide members with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients.

www.aicpa.org

1. What is the relationship between the AICPA and the Financial Accounting Standards Board (FASB)?

2. What are the requirements for becoming a CPA?

3. Upon joining the AICPA, a member agrees to abide by its Code of Professional Conduct and Bylaws. You can read the text of this Code on the AICPA's web site. Why do you think it is necessary for a professional organization, such as the AICPA, to set guidelines for professional conduct?

Chapter 6

Inventory Planning and Valuation

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 inventory and financial reporting policies.

www.bestbuy.com

1. What amount of merchandise inventory did Best Buy report on its most recent balance sheet?

2. What was Best Buy's merchandise inventory turnover ratio for the most recent year? What does this ratio indicate?

3. When does Best Buy's fiscal year end? Why might a company choose a date other than December 31 on which to end its fiscal year?

Chapter 7

Accounting for Uncollectible Accounts

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 and accounts receivable turnover. Go to Safeway's web site and locate its annual report.

www.safeway.com

1. Suppose that Safeway uses the percentage of sales method to compute uncollectible accounts expense and estimates that 0.6% of its net sales will be uncollectible. What would be Safeway's estimated uncollectible accounts expense for the most recent year?

2. Compute Safeway's accounts receivable turnover ratio for the most recent year. What does this number tell you?

3. Go to Kroger's web site at www.kroger.com and calculate its accounts receivable turnover for the most recent year. Who has the more favorable accounts receivable turnover-Safeway or Kroger?

Chapter 8

Accounting for Plant Assets

In this chapter, you learned that plant assets, such as land, buildings, and equipment, are expected to help the business earn a profit for more than one year. A large technology company, such as Microsoft, invests a significant amount of money in its plant assets. Locate Microsoft's most recent annual report on its web site.

www.microsoft.com

1. What amount of plant assets (property, plant, and equipment) did Microsoft report on its most recent balance sheet?

2. What method of depreciation does Microsoft use for its plant assets for financial reporting purposes? (Hint: Look at the notes to the financial statements.)

3. When Microsoft prepares its corporate income tax return, all depreciation is reported using MACRS. Why would a company use one method of computing depreciation for financial reporting purposes and another method for tax reporting purposes?

Chapter 9

Accounting for Notes Payable, Prepaid Expenses, and Accrued Expenses

In the Legal Issues in Accounting feature, you learned about the Occupational Safety and Health Administration (OSHA). OSHA is the government agency responsible for enforcing federal workplace safety laws and regulations.

www.osha.gov

1. How many people does OSHA employee? What was its budget for the most recent fiscal year?

2. What are some of the ways OSHA ensures workplace safety?

3. Do you think it is necessary to have a federal agency that oversees workplace safety? Why or why not?

Chapter 10

Accounting for Notes Receivable, Unearned Revenue, and Accrued Revenue

Revenue received in one fiscal period but not earned until the next fiscal period is called unearned revenue. Many entertainment organizations sell season tickets to their productions, often resulting in unearned revenue. Consider the accounting effects of season ticket sales on a professional sports organization, such as the Boston Celtics.

www.nba.com/celtics

1. How can fans obtain season tickets for Boston Celtics games?

2. If the Boston Celtics' records revenue from season ticket sales when it is initially received, what adjustment is required at year-end?

3. Should sports teams recognize season ticket sales as revenue when the sales are made, or should they wait until the end of the season to recognize the revenue? Support your answer.

Chapter 11

Organizing a Corporation and Paying Dividends

CNN's Financial Network devotes a section of its web site to the stock market.

www.cnnfn.com/markets/

1. What is the stock symbol for Disney? For what amount is Disney's stock currently trading? When did Disney last pay a dividend?

2. What were the 52-week high and low prices for General Electric stock?
3. As of February 2000, Microsoft had never paid a dividend on its stock. Why do you think Microsoft has chosen not to pay a dividend, despite it being such a successful company?

Chapter 12

Acquiring Additional Capital for a Corporation

In this chapter, you were introduced to bonds. You can learn more about bonds by visiting the Bonds Online web site. Bonds Online offers information on all types of bonds, as well as the latest information on the bonds market. You can even send a bond-related question to the Bond Professor.

www.bonds-online.com

1. What are the various bond ratings and what does each mean?

2. For how much could you currently redeem a $100 Series EE U.S. savings bond purchased in January 1985?

3. Why might a person choose to invest in bonds rather than stocks?

Chapter 13

Financial Analysis and Reporting for a Corporation

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' annual report from its web site.

www.sears.com

1. What was Sears' earnings per share for the most recent year? What does this number represent?

2. Compute the rate earned on average total assets. What does this number represent?

3. What kinds of information can you learn from reading the notes to Sears' financial statements? Why do you think it is important to read the notes to the financial statements when analyzing a company's annual report?

Chapter 14

Budgetary Planning and Control

In the Cultural Diversity feature, you learned that women-owned businesses are growing at an astounding rate. The Asian Women in Business (AWIB) organization provides a web site for Asian female entrepreneurs.

www.awib.org

1. When was the AWIB started? What services does it provide?

2. What other business and professional organizations for women and minorities are available in your state?

3. What are some of the challenges that women entrepreneurs face?

Chapter 15

Accounting Information for Management Decisions

Management accounting is the area of accounting concerned with providing internal financial reports to assist management in making decisions. The Institute of Management Accountants (IMA) has a web site devoted to the field of management accounting.

www.imanet.org

1. What are the requirements for becoming a Certified Management Accountant?

2. What are some benefits and services that the IMA offers its members?

3. How does management accounting differ from financial accounting?

Chapter 16

Financial Statement Analysis

Financial statements report the financial progress and condition of a business for a fiscal period. Although financial statements provide useful information, they can be difficult to understand; thus, it is important to know how to analyze financial information. Go to Coca-Cola's web site and locate its most recent annual report.

www.cocacola.com

1. Did Coca-Cola's net income increase or decrease from the previous year? What was the percentage increase or decrease?

2. What was Coca-Cola's rate earned on net sales for the current year? For the previous year? What does a comparison of these two numbers tell you?

3. Compute Coca-Cola's earnings per share and price-earnings ratio. Based on these two numbers, would you invest in Coca-Cola? Why or why not?

Chapter 17

Statement of Cash Flows

A statement that summarizes cash receipts and cash payments resulting from business activities during a fiscal period is called a statement of cash flows. Corporations are required to include a statement of cash flows in their annual reports. Locate Hershey Foods' most recent statement of cash flows on its web site.

www.hersheys.com

1. Analyze Hershey's cash flows from operating activities. What does your analysis reveal?

2. Analyze Hershey's cash flows from investing activities. What does your analysis reveal?

3. Analyze Hershey's cash flows from financing activities. What does your analysis reveal?

Chapter 18

Cost Accounting for a Merchandising Business

In the Small Business Spotlight feature, you learned about the Small Business Administration's web site. The web site includes resources for small business owners, as well as useful information for individuals thinking about starting their own businesses.

www.sba.gov

1. What questions should you ask yourself if you are thinking about starting your own business? How would you answer these questions?

2. What is a business plan? Why do you need one to start your own business?

3. Why is it important to know accounting when starting your own business?

Chapter 19

Cost Accounting for a Manufacturing Business

In the Accounting at Work feature, you read about Don Laskowski, founder of Wood-Mizer Products. Wood-Mizer Products is the world's largest manufacturer of portable saw mills. Based in Indianapolis, Wood-Mizer sells its products to 98 countries throughout the world.

www.woodmizer.com

1. What are some of the countries in which Wood-Mizer has sales representatives?

2. What might be some of Wood-Mizer's direct materials? Indirect materials?

3. What are some challenges a company may face when selling its goods internationally?

Chapter 20

Accounting Transactions and Financial Reporting for a Manufacturing Business

In the Explore Accounting feature, you were introduced to ISO 9000 certification. This certification assures customers that a company has an effective quality management system that continually evaluates and improves the production process. You can learn more about ISO certification by visiting ISO Online.

www.iso.ch

1. How did international standardization get started? When was ISO 9000 certification introduced?

2. Is ISO 9000 certification only for large companies?

3. Why is international standardization needed?

Chapter 21

Organizational Structure of a Partnership

In the Cultural Diversity feature, you read about minority recruiting. There are many resources on the Internet devoted to minority recruiting and minority-owned businesses.

www.minorities-jb.com

1. Who are some of the employers who advertise on this web site?

2. List three jobs available through Minorities'Job Bank that require accounting knowledge. What specific accounting knowledge is needed for each job?

3. Do you think it is important for a company to have a culturally diverse workforce? Why or why not?

Chapter 22

Financial Reporting for a Partnership

In the Accounting In Your Career feature, you read about a couple considering venture capital funds as a source of investment in their new business. Venture capital funds invest money in new businesses with the expectation of financial rewards in the future. You can find several venture capital funds on the Internet. One such fund is Boston Capital Ventures.

www.bcv.com

1. What is Boston Capital Ventures' investment strategy?

2. What is the process for obtaining venture capital funds from Boston Capital Ventures?

3. What are the advantages and disadvantages of obtaining venture capital funds to start a business?

Chapter 23

Budgeting and Accounting for a Not-for-Profit Organization

An organization providing goods or services with neither a conscious motive nor expectation of earning a profit is called a not-for-profit organization. There are many not-for-profit organizations in existence, such as the United Way and the Red Cross.

www.redcross.org

1. What kinds of services does the Red Cross offer?

2. How can you become a Red Cross volunteer?

3. If not-for-profit organizations have no expectation of earning a profit, how do they have enough money to operate?

Chapter 24

Financial Reporting for a Not-for-Profit Organization

Most states post their annual financial statements on the Internet. You will often find the financial statements under the Comptroller General or Auditor General section of the state's web site. Find the most recent financial statements for the state of South Carolina.

www.cg.state.sc.us

1. What are South Carolina's primary sources of revenue?

2. What was South Carolina's excess or deficiency of revenue over expenditures for the most recent year?

3. Why do you think it is important for a government to prepare an annual budget?