Discussion, Learning Activity and Required Resources
Part 1: Generally Accepted Accounting Principles (G.A.A.P)
Briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What are they? What is their purpose? Name the U.S. and international standard-setting bodies that established these principles. Are all companies required to follow these principles? Why or why not?
Your answer should illustrate understanding of generally accepted accounting principles and their international counterpart.
Part 2: Annual Reports
Visit the website for Tootsie Roll (www.tootsie.com). Click on "Company Information" then "Financial Information". Open the latest annual report and review it to find the answers to the following questions:
• What are Tootsie Roll's corporate principles? Do you agree with these principles, or do you feel there are additional principles that should be included?
• What was the total amount of Tootsie Roll's assets for the most current year available?
• What was the total amount of Tootsie Roll's liabilities for the most current year available?
• What is the amount of the difference between Tootsie Roll's assets and liabilities? What is this difference called?
Based on your initial findings at the Tootsie Roll website, would you consider investing in them? Why or why not? Your answer should illustrate critical thought and understanding of the annual report and financial statements.
Learning Activity
Read the "Continuing Problem Cookie Creations" for Chapters 1 and 2 on the Textbook's Companion Website. Choose the Student Companion site to access the Continuing Cookie Chronicle under Additional Exercises and Problems.
Jot down answers in your own notes for each of the questions asked. This information will be used when you complete your summative assignment. You do not need to submit your answers to the instructor but reading and familiarizing yourself with the questions and answers will help as you progress through the project.
Required Resources:
Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2016). Financial accounting: Tools for business decision making (8th ed.).
• Chapter 1: Introduction to Financial Statements
• Chapter 2: A Further Look at Financial Statements
Website
Tootsie Roll Corporate Website.
Recommended Resources:
Website
Textbook Student Companion Site.
Review the PowerPoint presentations for Chapter 1 and Chapter 2 found on the textbook publisher's website.
• Review the PowerPoint presentations for Chapter 1 and Chapter 2 found on the textbook publisher's website.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.