AC 432 Assignment__2

AC 432 Assignment__2 - There are many accounting issues in...

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There are many accounting issues in the industry of supplying office products and services. We have listed some of these in the following: Receivables may be affected by an economic decrease in the U.S. or internationally; in addition, an allowance for doubtful accounts needs to be recorded to moderate receivables to an amount estimated to be collected from customers. The U.S. uses the weighted average method to determine the cost of a majority of our merchandise inventory; furthermore, inventories are noted at the lower cost or market value. Income tax expense is recognized at pertinent U.S. or international tax rates. Specific revenue and expense items may be recognized in one period for financial statement purposes and in another period’s income tax return. The tax effects are reported as deferred income taxes. The fair values of cash and cash equivalents, short-term investments, accounts payable, receivables, accrued expenses, and other current liabilities approximate their carrying values because of their short-term nature. The fair value of the senior subordinated notes and senior notes are determined
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AC 432 Assignment__2 - There are many accounting issues in...

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