accounting questions
Not what you're looking for?
Basis of accounting questions need the following help with the questions listed.
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to state two generally accepted accounting principles that relate to adjusting the accounts.
Solution Preview
I have attached document file for you.
Prepare written answers to the following assignments from Chapter 3 of the text, Financial Accounting 6th ed:
a. Questions 2, 3, 4 and 8
2. State two generally accepted accounting principles that relate to adjusting the accounts.
Two generally accepted accounting principles are revenue recognition principle and matching principle.
3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May.
If Marsh's law firm prepares monthly financial statements, when should it recognize revenue from this
engagement? Why?
It should recognize the revenue in April when the service is being rendered in accordance to the revenue
recognition principle.
4. Why do accrual-basis financial statements provide more useful information than cash-basis statements?
Accrual-basis financial statements provide more useful information than cash-basis statements because
it records the revenue that a company has earned in that accounting period and also match the expenses
with earned revenues.
8. Distinguish between the two categories of adjusting entries, and identify the types of ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Introduction to Finance
This quiz test introductory finance topics.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.