ACC 421 Week 2 DQS

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This document ACC 421 Week 2 Discussion Questions comprises:

DQ1: What are different criteria for recognizing revenue? Why are there so many revenue recognition methods? Why are the methods subjective and what are the implications on income statement quality? What type of revenue recognition is used in your company? Thoughts on reasons for using that method?

DQ2: What are the differences between regular and irregular items on an income statement? What are the requirements for items to qualify as irregular? What are some examples of irregular items? What is the effect of irregular items on an investor’s analysis of a company? What is the benefit of listing irregular items separately on the income statement versus combining them with regular items?

DQ3: What is included in other comprehensive income? Why are items included in other comprehensive income, but not included in net income? Should these items be included in net income or not included at all? Explain your answer. Which format of reporting comprehensive income do you find easier to read and understand and why?

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