Microsoft Word XXXXXXXXXXFall ACCT 311 Individual Project Prompt.docx
Yang
1
Individual Project
ACCT 311
Fall 2020
Discussion Question #1
Refer to the article “Coronavirus Shows Cash Is King, Even for Biggest U.S” in Wall Street
Journal (March 25, 2020) and answer the following questions.
What is the purpose of the balance sheet? Of the income statement?
How does the discussion in the article focus on the balance sheet? Describe the overall focus
and give at least one supporting example.
The article describes Apple as ending last year with $247 billion “…in cash, securities, and
account receivables [sic], enough to run its operations for more than a year even if it didn’t
cut costs or sell a single iPhone.” How is this calculation similar to the calculation of a quick
atio? How does it differ?
Compare the description of Apple to the retailers listed in the graphic entitled “Cash Burn.”
What is one factor explaining the differences in the results for this industry, as described in
the article?
Note the calculation described in the caption to the graphic “Cash Burn.” Why are
depreciation, amortization, stock compensation, and write-downs excluded from the
operating expenses that are considered in the analysis?
Please answer one of the following three discussion questions. The due time is 11:59 p.m.
November 5.
Your write-up should be no more than 3 pages, double-spaced, with a font size of 12. You
do not have to repeat the question but you need to indicate which question you are responding
to. In your writ-up, you can either answer each bullet point separately or combine multiple
ullet points and answer all together. Be sure to answer each question asked.
Be sure to present your response with detailed example/calculation when necessary. You are
encouraged to include the support of authoritative literature (e.g., FASB Accounting
Standard Codification).
Access the FASB’s Codification Research System through http:
aaahq.org/ascLogin.cfm.
See “How to Search for and Cite Related Accounting Authoritative Literature” document for
detailed guidance. Use the following information to log in: AAA52069 (Username);
2RWEe2g (Password).
Check “Individual Project Grading Ru
ics” for project grading policy. Submit your answers
through Blackboard (under “Individual Project” tab).
Yang
2
Discussion Question #2
Refer to the article “Inside Under Armour’s Sales Scramble: ‘Pulling Forward Every Quarter’”
in Wall Street Journal (November 14, 2019) and answer the following questions.
What tactics were used by Under Armour sales executives and staff to meet sales targets at
each quarter-end?
Consider the specific tactic of redirecting merchandise intended for the company’s own
factory stores to supply discount retailers. What revenue implications exist due to that
practice?
What finally happened in the fourth quarter of 2016 which led to a 23% decline in Under
Armour stock price? Do you think this event was related to the end-of-quarter sales tactics
the company was using? Explain.
Could these sales practices affect the timing or amount of revenue recognized by Under
Armour in its financial statements? Explain your answer.
Explain your understanding of the statement that “analysts and accounting experts agree the
end-of-quarter maneuvers described by these executives are generally permitted under
accounting rules.”
Discussion Question #3
Refer to the article “Hit by Coronavirus—and a 30% Holdback by the Payment Processor” in
Wall Street Journal (June 15, 2020) and answer the following questions.
What is the function of a payment processor? Particularly comment on the usefulness of
these services for small businesses.
What are ‘chargebacks’? Who is responsible for paying chargebacks?
Why are businesses that charge customers upfront for future services at greater risk of
“chargebacks”?
How are payment processors analyzing the exposure they face due to increased chargebacks
during the Covid-19 pandemic?
What steps are payment processors taking as a result of their analyses related to chargebacks?
How are these steps impacting businesses, particularly small ones, that use payment
processor services?
Microsoft Word - ACCT 311 Individual Project Grading Ru
ics.docx
Yang
Individual Project Grading Ru
ics
Trait/ Score
Exceed
Expectations
(13-15)
Meet Expectations
(3-12)
Below Expectations
(0-2)
Trait 1 Accuracy Respond to the
questions with little
or no e
ors
Respond to the
questions with
some e
ors
Respond to the
questions with a lot
of e
ors
Trait 2 Depth Present the
esponses with the
support of co
ect
authoritative
literature and/or
detailed factual
evidences
Present the
esponses with the
support of related
authoritative
literature and/or
some factual
evidences
Present the
esponses with the
support of no or
little authoritative
literature and
factual evidences
Trait/ Score
Exceed
Expectations
(5-6)
Meet Expectations
(3-4)
Below Expectations
(0-2)
Trait 3 Writing Present the
esponses with little
or no e
ors in
grammar
Present the
esponses with
some e
ors in
grammar
Present the
esponses with a lot
of e
ors in
gramma
Trait/ Score
Exceed
Expectations
(4)
Meet Expectations
(2-3)
Below Expectations
(0-1)
Trait 4 Format Present the
esponses with little
or no e
ors in
format, e.g., # of
pages, font size, or
spacing
Present the
esponses with
some e
ors in
format, e.g., # of
pages, font size, or
spacing
Present the
esponses with a lot
of e
ors in format,
e.g., # of pages,
font size, or spacing
To work to the satisfaction of Trait 2, refer to “How to Search for and Cite Related Accounting
Authoritative Literature.pdf” posted on blackboard.
Note that plagiarism or cheating on the project is strongly prohibited and will be subject to
disciplinary action. You will also receive 0 point for the entire project.