1. Compare and contrast the direct write-off method and the allowance method for bad debts. At a minimum, please consider the following in your answer:

• When is the expense for uncollected accounts receivable recognized under each method?
• Why is the direct write-off method not considered to follow generally accepted accounting.

2.Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased? Choose one of the following depreciation methods to discuss: straight line, units of production, declining balance. Share how depreciation using this method is calculated and provide an example of when this would be the most ideal method for application.

3.What distinguishes a current liability from a long-term liability? Why is it so important to report these separately? How is this information used in decision making applications?

4.Define coupon and market/effective interest rates as they determine bond pricing at par, premium, or discount values.

5. What are the benefits of the corporation in comparison with the partnership and proprietorship structures? How is equity treated and reported differently in this structure?