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Discussion There will be two discussion questions listed below. By the due date assigned, respond to one of the discussion questions and submit your response

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Discussion There will be two discussion questions listed below. By the due date assigned, respond to one of the discussion questions and submit your response to the Discussion Area below, using the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using the APA format. Discussion Question One: MoviesPlus, Inc. is in its third year of business. The company offers DVD rental to online customers for a fixed monthly fee. The owner of MoviesPlus, Bob Colbert, has heard about GAAP, but he does not see any reason to follow these accounting principles. Although MoviesPlus is not publicly traded, Bob does put the company's financial statements on the company's Web page for customers to see. Explain how MoviesPlus would account for its revenue if it did follow GAAP. Should MoviesPlus use GAAP? Do you see this as an ethical issue? Explain. Discussion Question Two: You are a business consultant providing information and advice to future small business owners. One difficult concept for your clients to understand is the concept of economic substance. Accountants do not base the re stateme are recognized when the economic substance of the transaction has taken place. Explain the cognition of revenues and expenses on the income nt on the collection of cash or on the disbursement of cash. Revenues and expenses meaning and importance of economic substance and how it relates to the financial statements. Start reviewing and responding to at least two of your classmates' postings as early in the week as possible. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one or more lines of reasoning in the discussion. Additional Materials

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