BUS 305 Westcliff University Principles of Accounting Class Discussion Questions.
Using the text, search for the terms accrual and estimate. Familiarize yourself with these terms. Discuss three examples of accruals and three examples of estimates, and why these concepts of accounting mean that profit does NOT equal cash.
a. Why is revenue recognition important to understanding cash flow in a business?
b. Using Starbucks 2019 10-k, search through the document looking for the search term revenue recognition. Connect what you find to your response in part a describe what you have learned about how they recognize revenue and how that impacts their cash flow.
Make sure you include and use a minimum of two peer-reviewed, academic, or business resources, plus the textbook in your paper.
I will send you PPT’s of the book, and a template that you need to follow and use it.