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FIN621 - Financial Statement Analysis Graded Discussion Board
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Total Marks 2
Starting Date Monday, April 18, 2011
Closing Date Wednesday, April 20, 2011
Status Open
Question/Description

Semester "Spring 2011"

 

"Financial Statement Analysis (FIN 621)"

This is to inform that Graded Discussion Board (GDB)

Has been opened according to the following schedule

 

Schedule

 

Opening Date and Time

April 18, 2011 At 12:01 A.M. (Mid-Night)

 

Closing Date and Time

April 20 , 2011 At 11:59 P.M. (Mid-Night)

 

Note: No extra or bonus/grace period is available for attempting GBD.

 

Discussion Question

"ABC Company Limited purchased one dozen energy saver bulbs of worth Rs. 3,500 for using in administration department. These energy saver bulbs have expected life of three years. According to CEO of the company, the cost of Rs.3,500 must be recorded as an ASSET because energy saver bulbs are going to benefit the company for more than one year whereas the accountant has already recorded the entire amount to an expense account in the income statement.

 

Required: Do you think that the accountant is right? Justify your answer by mentioning the accounting concept behind the treatment of this purchase. "

 

 

Note: Your comments should not be more than 30 words.

 


Instructions:

 

Read the following instructions before giving your comments on GDB:

 

  1. Use the font style "Times New Roman" and font size "12".
  2. Your answer should be relevant to the topic i.e. clear and concise.
  3. Do not copy or exchange your answer with other students.  Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
  4. Books, websites and other reading material may be consulted before posting your comments but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0).
  5. Obnoxious or ignoble answer should be strictly avoided.

 

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