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Week 5 Reflection Summary

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Week 5 Reflection Team A ACC/291 February 29, 2013 Steven Marantz

Weekly Reflection We covered very interesting topics in week three and four. The students were asked to discuss topics which they felt comfortable with, the topic they may have struggled with, and how the weekly topics related to the application of their field. The students of team A have some similar pertaining to the weekly reading assignment and some that are different. Some of the topics we discussed were how to apply ratio, vertical, and horizontal analyses to financial statement; and also, how to distinguish common stock and preferred stock and, how Corporations issue stocks in accordance with their Articles of Incorporation. Team A agreed that these topics were more clearly and easy to understand. We all were comfortable and ready to use these concepts in the real world. The topics we all struggled with are how to calculate the liquidity, profitability, and the solvency ratios on the balance sheet and income statement. We also learned that accounting could best be described as a type of mechanism or language put in place in order to provide information with regards to the financial position of an organization or business. This type of information is critical to investors as it provides them with important and detailed information that could turn out to be the determining factor as to their decisions to invest or not to invest in a particular organization. Therefore, it is not uncommon to find unethical behavior in accounting as unethical practices come in different forms and different situations that might lead to unethical practices in accounting include are misleading financial analysis in order to obtain personal gains, misuse of funds, exaggerating revenue, Purposely providing erroneous information in

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