Robert L. Hurt
California State Polytechnic University

I give this assignment to students near the end of their first ten-week accounting course. It requires them to analyze an annual report.

The assignment is divided into two principal parts: a written paper and an oral presentation in front of the class. The grade for the written assignment is based solely on the individual's contribution to the overall paper. In addition, each student has to participate in the oral presentation in some way. The grade for the oral presentation is given to the group as a whole.

The written portion of the assignment requires the following:

1. List and discuss at least two specific activities of the firm you select in each of the following areas: operating activities, investing activities, and financing activities.
   
2. Cite specific examples from the firm's financial statements that illustrate the characteristics and features of accounting information outlined in the FASB conceptual framework.
   
3. Evaluate the firm's liquidity position in relation to either (1) a previous year or (2) industry averages.
   
4. Outline at least three intangible factors for the firm that are not recognized by the traditional accounting model. Discuss your choices.
   
5. Develop and discuss two documents that the firm might use in processing transactions through the revenue cycle.
   
6. Develop and discuss two documents that the firm might use in processing transactions through the expenditure cycle.