All businesses are subject to various types of legal proceedings. Merck & Co. Inc, a
pharmaceutical drug company has been a defendant in a number of product liability lawsuits. In
the notes to Mercks 2008 financial statements, the company states:
Chapter 3 Processing Accounting Information details how accounting information is processed.
Ledger accounts, journal entries, and trial balances are tools that allow a company to process
vast amounts of data efficiently. (Porter & Norton)
An accounting s
Accrual refers to incurred expenses not yet spent or earned revenue not yet received. To see
how adjusting entries affect the measurement of revenue and expense, and the ways
transactional data is transformed to the accrual basis of accounting by the adju
As you learned in this week's reading, account receivables record bad debts or other
promises to pay by debtors (Porter & Norton). To understand the accounting for the sale of
investments and the generation of notes receivable, please reference:
This week you learned about liabilities, contingencies, and the time value of money. The
discussion for the week is to explore the nature and variety of current liabilities.
1. Explain current liabilities. Why is it important to distinguish between curren
This week's class discussion explores the effects of long-term liabilities on a company's
Discuss the advantages and disadvantages in regards to financing with bonds.
The advantages are that there are fixed interest rates for the term of th