This case, based on the activities of a fictional online grocery shopping and delivery service startup, introduces beginning M.B.A. students to financial accounting. The case write‐up provides cash inflows and outflows and other detailed information about the firm's first three years of operations, which include sizable expenditures to develop customer order‐entry software. Using this information, you are required to prepare comparative accrual‐basis financial statements and to explore the impact of alternative accounting treatments on these financial statements for software development expenditures. The purpose of this case is to provide you with an appreciation for financial statements as a device for communicating the firm's financial position and performance, to illustrate some of the problems and ambiguities that arise in implementing accrual accounting, to expose you to the interpretation of actual accounting standards, and to introduce you to the use of historical financial statements in predicting future earnings.
Research Article| May 01 2002
Michael F. Peters, Assistant Professor;
Kenneth W. Shaw, Assistant Professor;
Issues in Accounting Education (2002) 17 (2): 197–209.
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Michael F. Peters, Kenneth W. Shaw, Robert B. Thompson; ShoppingWithoutDropping.com, Inc.. Issues in Accounting Education 1 May 2002; 17 (2): 197–209. doi: https://doi.org/10.2308/iace.2002.17.2.197
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