In this discussion, you have the option of responding to one of two topics, either Option 1: The Wall Street Journal Article Review, or Option 2: Periodic or Perpetual, Choose Wisely.
Option 1: The Wall Street Journal Article Review
For this discussion topic, you are to select and address one of the topics covered in this course as it relates to an article found in The Wall Street Journal.
This daily newspaper provides coverage of headlines and breaking news in the United States and around the world, with a focus on business issues that are pertinent to you. Review an article of your choosing from The Wall Street Journal and address the following:
- Select an article of your choosing from the WSJ. The article should relate to the financial performance of a company, or any other topic that we have covered in this course on the fundamentals of accounting. In each daily publication, there will be numerous examples from which to choose.
- Provide the title and date of the article you have selected.
- Briefly, list and provide definitions of the various terms and concepts we have studied that you found in the article. A minimum of three definitions should be found.
- The discussion post is not required to be of significant length, as there is value in your demonstration of having accessed The Wall Street Journal evidenced by your having matched several theoretical definitions and concepts to actual business occurrences.
Option 2: Periodic or Perpetual, Choose Wisely
Review the Discussion Participation Scoring Guide.
Cripple Creek Hardware Store currently uses a periodic inventory system. Hoyt Braxton, the owner, is considering the purchase of a computer system that would make it feasible to switch to a perpetual inventory system. Hoyt is unhappy with the periodic system because it does not provide timely information on inventory levels.
Hoyt has noticed on several occasions that the store runs out of good-selling items, while too many poor-selling are on hand. Hoyt is also concerned about lost sales while a physical inventory is being taken. The store currently takes a physical inventory twice a year. To minimize distractions, the store is closed on the day inventory is taken. Hoyt believes that closing the store is the only way to get an accurate count.
You have been brought in to assess the situation and provide expert advice on which course of action to take—remain with the current periodic inventory system or switch to a perpetual inventory system. Present your findings to Hoyt, discussing whether switching to a perpetual inventory system will strengthen Cripple Creek Hardware’s control over inventory items and eliminate the need for a physical inventory count.