AC/113 AC113 AC 113 UNIT 2 DISCUSSION
- Kaplan University / AC 113
- 16 Aug 2017
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AC 113 UNIT 2 DISCUSSION
Unit 2: Unit 2: Basic Accounting Concepts - Discussion
Unit 2 Discussion:
Throughout this course, many discussion opportunities come up where you need to respond to other people's opinions and comments. Address the Discussion topic after you have completed your Reading.
Basic accounting concepts are very important in understanding how businesses record and summarize transactions. In this Discussion, you will look at the basic elements of a financial accounting system and how the financial statements are prepared.
This week’s Discussion focuses on Activity 2-2 located on page 78 of your textbook, which reads as follows:
On August 1, 2013, Dr. Ruth Turner established SickCo, a medical practice organized as a professional corporation. The following conversation occurred the following February between Dr. Turner and a former medical school classmate, Dr. Shonna Rees, at an American Medical Association convention in New York City.
Dr. Rees: Ruth, good to see you again. Why didn’t you call me when you were in Denver? We could have had dinner together.
Dr. Turner: Actually, I never made it to Denver this year. My husband and kids went up to our Vail condo twice, but I got stuck in Fort Lauderdale. I opened a new consulting practice this August and haven’t had any time for myself since.
Dr. Rees: I heard about it…Sick…something…right?
Dr. Turner: Yes, SickCo. My husband chose the name.
Dr. Rees: I’ve thought about doing something like that. Are you making any money? I mean is it worth your time?
Dr. Turner: You wouldn’t believe it. I started by opening a bank account with $45,000, and my January bank statement has a balance of $100,000. Not bad for 6 months – all pure profit.
Dr. Rees: Maybe I’ll try it in Denver! Let’s have breakfast together tomorrow and you can fill me in on the details.
Comment on Dr. Turner’s statement that the difference between the opening bank balance ($45,000) and the January statement balance ($100,000) is pure profit.
USA 
India