Essay about Acc 291 Week 2 Dqs and Participation Questions

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Week 2 DQs and Participation Questions
Week 2 Discussion Question #1
 What are the differences among valuation, depreciation, amortization, and depletion? Is it appropriate to calculate depreciation using two different methods? Why?
 Which depreciation method provides you the highest depreciation expense in the first year? Why?
Valuation refers to the asset being recorded and disclosed at current market price regardless of whether that price is above or below cost. Depreciation is the allocation of the cost of a plant asset to expense over its useful or service life in a rational and systematic manner. There are three methods that can be used for depreciation and a company must pick which method they want to use and stick with that
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Unearned revenue refers to revenues that are received before the company delivers goods, or provides services. Unearned revenue is recognized in the financial statements as soon as they are received because when a company receives the advance payment, it will debit Cash, and credit Current Liability account identifying the source of the unearned revenue. Then when the company earns the revenue, it will debit the Unearned Revenue account, and credit the Earned Revenue account.
Week 2 Questions for Participation #2
 How would you describe the accounting procedures for notes payable and accounts payable?
Note payables refers to the obligation that companies record in the form of a written promissory note. They give the lender formal proof of the obligation in case legal remedies are needed to collect the debt and for this reason notes payables are often used instead of accounts payables. Notes payables usually require the borrower to pay interest and companies usually issue them to meet short-term financing needs. But Notes are issued for varying periods. The ones that are due for payments within one year of the balance sheet date are usually classified as current liabilities.
Account Payables are the amounts due to the suppliers relating to the purchase of goods and services. These can be