Case 5.37 LO 5,7,8 Focus company-accounts receivable and inventory disclosures In Exercise 1.1, you were asked to obtain the most recent annual report of a company that you were interested in reviewing throughout this term. Required: Review the note disclosures provided in your focus company's annual report and discuss what you've learned about how your company's accounts receivable and inventory are accounted for and presented. Exhibit 1-1 Users and Uses of Accounting Information User Decision/Informed Judgment Made Management Investors/shareholders Creditors/suppliers Employees When performing its functions of planning, directing, and controlling, management When considering whether to invest in the common stock of a company, investors u When determining how much merchandise to ship to a customer before receiving p When planning for retirement, employees assess the company's ability to offer long-t SEC (Securities and Exchange Commission) When reviewing for compliance with SEC regulations, analysts determine whether f Accounting information is required for just about every kind of organization. When accounting is mentioned, most people initially think of the information needs and reporting requirements of business firms, but not-for-profit social service organizations, governmental units, educational institutions, social clubs, political committees, and other groups all require accounting for their economic activities as well. Accounting is frequently perceived as something that others who are good with numbers do, rather than as the process of providing information that supports decisions and informed judgments. Relatively few people become accountants, but almost all people use accounting information. The principal objective of this text is to help you become an informed user of accounting information, rather than to prepare you to become an accountant. However, the essence of this user orientation provides a solid foundation for students who choose to seek a career in accounting. If you haven't already experienced the lack of understanding or confusion that results from looking at a set of financial statements, you have been spared one of life's frustrations. Certainly during your formal business education and early during your employment experience, you will be presented with financial data. Being an informed user means knowing how to use those data as information. The following sections introduce the major areas of practice within the accounting discipline and will help you understand the types of work done by professional accountants within each of these broad categories. In a similar way, the accompanying Business in Practice discussion highlights career opportunities in accounting