Lackawanna ACC105 2021 September Module 5 Discussion (dq1+dq2) Latest

ACC105 Principles of Accounting 1

Module 5 Discussion

DQ1 Business Connection

Accounting Systems and Profit Measurement

A Greek restaurant owner in Canada had his own system of accounting. He kept a his accounts payable in a cigar box on the left-hand side of his cash register, his daily cash returns in the cash register, and his receipts for paid bills in another cigar box on the right. A truly “manual” system. When his youngest son graduated as an accountant, he was appalled by his father's primitive methods. “I don't know how you can run a business that way,” he said. “How do you know what your profits are?” “Well, son,” the father replied, “when I got off the boat from Greece, I had nothing but the pants I was wearing. Today, your brother is a doctor. You are an accountant. Your sister is a speech therapist. Your mother and I have a nice car, a city house, and a country home. We have a good business, and everything is paid for....”

“So, you add all that together, subtract the pants, and there's your profit!”

Thoughts?  Why do we have accounting systems?  Why can't we follow this gentleman's train of thought?

DQ2 Step two:  Research!

 Using the internet, newspapers, magazines, and/or library, research your company.  Write 1-2 pages double spaced about the following topic regarding your chosen company. Post your work here. Be sure to cite your sources using APA format!

What types of measures are they taking to ensure this doesn’t happen again?

NOTE: while researching keep in mind ethics and accounting (SEC, FASB, etc). Apply your research to these topics!!!

Any other topics you would like to research or things you stumble upon.