Companies must consider how accounting standards, within the current accounting framework, can have a variety of economic consequences on the company.
Consider the article “Sears: Accounting for Uncollectible Accounts” (Hoyt & Nelson, 2000). Next, using outside sources that you may seek and your professional experience, develop and write a 3- to 4-page paper concisely answering the following questions:
(A2.1) What is Sears’ management trying to achieve through decisions with respect to financial reporting for uncollectible accounts?
(A2.2) What accounting standards must Sears consider when making its decisions?
(A2.3) Did Sears management meet its financial reporting objectives?
(A2.4) What did Sears’ accountants (and management) use in making decisions: knowledge, estimates, or assumptions? Is there any difference between these things?
Your paper should reflect the application of the resources presented this week, as well as knowledge gained from previous weeks’ required or optional readings.
Refer to The Research Process page in the left navigation bar to guide your research for this Assignment. Be sure to support your work with specific citations from this week’s Learning Resources and any additional resources.For more information on Analyzing Accounting Standards read this : https://en.wikipedia.org/wiki/Accounting_standard