Of what merit is the contention that the allowance methodlacks the objectivity of the direct write-off method? Discussin terms of accounting’s measurement function.

Q: What is the difference between the auditor’s approach in verifyingsales returns and allowances and…

A: Sales returns and allowances: Sometimes, customers either return goods due to manufacturing defects,…

Q: What is a performance obligation, and how is it used todetermine when revenue should be recognized?

A: The performance obligation is the promise made by the business entity to provide the goods or…

Q: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

Q: In the Off-Balance-Sheet Inventory Financing instance, how may auditors have identified the…

A: This question explains about the Off-Balance-Sheet Inventory Financing instance

Q: how does the change in accounting of nonrecurring items?

A: Non Recurring items are the ones that do not occur frequently.

Q: If inventory errors are said to correct themselves, why are accounting users concerned when such…

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Q: what is the difference betwwen classifying an expense by nature or function?

A: The costs that are incurred to earn revenues in the process of operating activities of the business…

Q: Under what circumstances is it appropriate to recordgoodwill in the accounts? How should goodwill,…

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Q: Which of the following conditions would violate the revenue recognition principle? Revenue is…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for…

A: Franchise arrangement and performance obligation:   In a franchise transaction, the franchisor has…

Q: What is the primary purpose of analyzing interest expense? Giventhis purpose, what primary…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

Q: How does Dropbox apply GAAP to revenue recognition? Explain and give examples.

A: Generally Accepted Accounting(GAAP) GAAP are a set of rules the encompass the details, complexities…

Q: How is a revenue-recognition abuse related to the percentage of completion method?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Which type of revenue activity is correctly matched with the revenue recognition method?

A: The question is related with the revenue activity is correctly matched with the revenue recognition…

Q: Define expense recognition principle

A: Expense recognition principle says that all expenses for the particular period must be recognized in…

Q: Why is inherent risk for the existence of inventory an issue in the expenditure cycle audit?

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Q: What is the difference between audit and accounting

A: Audit and accounting are two important things in business. Two of them are equally important for…

Q: Which of the following would be considered a change that affects consistency? * Change in accounting…

A: Consistency principles says that method and principles applying in preparing the financial statement…

Q: What is the difference between the APBO and the EPBO? What are the components of postretirement…

A: Difference between the APBO and the EPBO:Expected pension benefit obligation (EPBO): The amount of…

Q: describe general principles of expense recognition, specifi c expense recognition applications, and…

A: Expenses mean a decrease in economic benefits. Expenses are nothing but those transactions resulting…

Q: The recorded allowance for doubtful accounts should be increased by

A: Uncollectible accounts are those accounts for which it is estimated that due amount will not be…

Q: How is independent verification carried out in a manual revenue system, and give an example?

A: Verification is a process under which the confirmation is made by the auditor related to the actual…

Q: Where there is evidence that the utility of inventory goods, as part of their disposal in the…

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Q: What does the FASB do in order to assess possible benefits and costs of a proposed revision of an…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: Explain the accounting treatment of material inventory errors discovered in an accounting period…

A: Materials inventory: Material inventories are the primary materials which are used in the…

Q: What type of basis is it called when we report only the amounts actually collected and/or spent?

A: There are two methods of accounting. One is cash basis and other is accrual basis.

Q: Explain the appropriate accounting treatment required when an inventory error is discovered.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: What are some of the possible costs that could result from a revision of an accounting standard?

A: Financial Accounting Standards Board (FASB):   It is a private, non-profit organization which is a…

Q: ow they are reported. What are the disclosure requirements for correction of errors.  Please see…

A: Accounting Errors : A non-fraudulent inconsistency in financial documents is referred to as an…

Q: Discuss how a change in accounting policy is handled when it is impractical to ascertain earlier…

A: This question explains about  impractical to ascertain earlier values due to unforeseen…

Q: What is the difference between Accounts Payable foradvertising and Advertising Expense?

A: Operating expenses: These are the expenses that are incurred in carrying out the normal operations…

Q: Confirmations of accounts receivable provide evidence primarily about which two assertions?a.…

A: Accounts receivable is the outstanding amount  due from the customer for selling the goods on…

Q: why should the allowance for doubtful account and the valuation and qualifying accounts schedule be…

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Q: What are the four different approaches to implementing expense recognition? Give an example of an…

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