Expenses recognized in the wrong accounting period: What does it mean when a company may delay recording an expense by recording as an asset? Please explain.

Q: What is the impact on A Company financial statements if the company forgets to recognize that…

A: Unearned Revenue - Unearned Revenue is the revenue which is not earned by the company but amount…

Q: Under the Revenue Recognition Principle in IFRS, revenue is recognized In the accounting period when…

A: Under accrual-basis accounting, events that change a company's financial statements are recognized…

Q: Generally accepted accounting principles do not normally allow the use of the direct write-off…

A: GAAp: Generally accepted accounting principles. Two methods for writing off of bad debts are:…

Q: Expense Recognition Question: Why is that sometimes there is no direct relationship between…

A: Accounting is based on a set of principles and rules and the expense recognition principle is one of…

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: How did they get the selling and administrative expense (not traced

A: Activity based costing is method of manufacturing overhead allocation. Under this costing method…

Q: Which of the following would not overstate current-period net income?a. Capitalizing an expenditure…

A: Net income: Net income refers to the income earned by the company after providing for all the…

Q: Describe when and how a net operating loss carryforward and a net operating losscarryback are…

A: Net Operating Loss Carryforward:   The net operating loss is considered as negative taxable income.…

Q: When do companies break apart a sale and treat its parts differently for purposes of recognizing…

A: Earlier, the concept of revenue recognition was not properly framed and it created problems on the…

Q: Provide an argument explaining why expenses that were inadvertently omitted in a previous year…

A: The argument against this approach follows AASB 108 (Australian Accounting Standard Board-108) which…

Q: Using the allowance method, is Bad Debt Expense recognized in the period in which ( a ) sales…

A: Using the allowance method, Bad Debt Expense is recognized in the period in which sales related to…

Q: Why are administrative expenses that are incurred during a liquidation classified as liabilities…

A: Administrative expenses are those expenses related to liquidating cost and preserving the assets, in…

Q: Why does the accounting profession require the use of the allowance method of accounting for losses…

A: Step 1 Basically, the allowance method is the reporting way to report the loss of credit in books of…

Q: rue or False Unearned revenue is revenue that is earned but not yet collected

A: Solution Concept Unearned revenue                 The term unearned revenue means the revenue which…

Q: Explain the adjustments that may be made for the accounting discretions about the following:…

A: The accounting discretions refer to the choices and judgments made by accountants when preparing…

Q: 1) When an item of expense is paid and recorded inadvance, it is normally called a(n)

A: Cash may be paid before or after incurring expense.

Q: does a cancellation of a service affect the companys balance sheet or book value?

A: Cancellation of service affect the company's balance sheet or book value : Some of the contracts…

Q: Under ASC Topic 606 for revenue recognition, which of the following factors is not an indicator of…

A: Its Very Important to determine the Principal and agent as recording of revenue by both Principal…

Q: If a company failed to record an accrued income, what would be the effects?

A: Accrued income is that income which is being earned by the business for the particular period of…

Q: opic - Violation of Recognition, errors and intentional misstatements Question: Please explain and…

A: A "true and fair" financial statement refers to the presentation of financial information that is…

Q: GAAP requires companies to method to record bad debts expense. OA. use the allowance OB. use the…

A: Allowance for doubtful accounts is determined as the reduction in the accounts receivable that…

Q: Would a change from Completed Contract to Percentage of Completion be a change in accounting…

A: Change in accounting principle means that change in how financial information is calculated, while…

Q: The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a…

A: Consistency Characteristic: Consistency is a concept that asserts that once you have adopted an…

Q: ompany can not rely on net income as a valid measure to pay fixed charges

A:

Q: Under GAAP, companies are permitted to recognize bad debt expense based on estimated bad-debt losses…

A: The company makes cash as well as sales on account. The bad debt expenses represent the estimated…

Q: Why may companies not be indifferent to purchase and pooling accounting?

A: Answer:-  Pooling accounting:- The accounting procedure known as "pooling of interest" dictated how…

Q: What is an overbilling and how is it used in percentage - of - completion accounting?

A: In construction and project accounting, overbilling refers to the situation where a contractor…

Q: Corrections of significant errors of past periods are charged or credited directly to the Retained…

A: Retained earnings comes under the head liabilities in the balance sheet .

Q: The Direct Write-off method is the preferred method of accounting for uncollectible accounts…

A: Accounts receivables are customer accounts to whom a business has made credit sales on account and…

Q: What is an Asset impairment in accounting and what are the factors for considering an impairment?

A: The question is based on the concept of Financial Accounting. An asset impairment is the subsequent…

Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…

A: A transaction is a business engagement that has an economic effect on a financial statement and is…