Determine whether such costs should appear

Assignment Help Financial Accounting
Reference no: EM13513811

Accountants try to prepare income statements that are as accurate as possible. A basic requirement in preparing accurate income statements is to record costs and revenues properly. Proper recognition of costs and revenues requires that costs resulting from typical business operations be recognized in the period in which they expired.

Instructions

(a) List three criteria that can be used to determine whether such costs should appear as charges in the income statement for the current period.

(b) As generally presented in financial statements, the following items or procedures have been criticized as improperly recognizing costs. Briefly discuss each item from the viewpoint of matching costs with revenues and suggest corrective or alternative means of presenting the financial information.

(1) Receiving and handling costs.

(2) Cash discounts on purchases.

Reference no: EM13513811

Questions Cloud

Explain the rationale for recognizing costs as expenses : Explain the rationale for recognizing costs as expenses at the time of product sale and what is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain.
Define what is the new vapor pressure of the solution : The vapor pressure of water at 30.0 degree celsius is 31.82mmHg. A portion of mannitol (C6H14O6, non-volatile) is added to make a 3.50M solution. The solution has a density of 1.048 g/mL. What is the new vapor pressure of the solution
State the rate of the reaction of methyl ethyl acetate : The rate of the reaction of methyl ethyl acetate with hydroxide to form acetate ion and ethanol as shown in the following reaction, CH3COOC2H5(aq) + OH-(aq) => CH3COO-(aq) + C2H5OH(aq) was measured at several temperatures and the following dat..
Compute the taxable income : On the basis of the facts as presented, answer the following questions. (You need not be familiar with all the specific tax forms used when actually filing the return.)
Determine whether such costs should appear : Determine whether such costs should appear as charges in the income statement for the current period.
What is the magnitude of the net change in entropy : A heat engine operates between a high-temperature reservoir at670K and a low-temperature reservoir at 320 K. What is the magnitude of the net change in entropy as a result of this cycle
Explain the decomposition of hydrogen peroxide : The decomposition of hydrogen peroxide can be catalyzed by iodide ion. The catalyzed reaction is thought to proceed by a two step mechanism.
What is the average voltage induced as the flux is changing : A 200-loop coil of cross sectional area 8.5 cm2 lies in the plane of the paper. Directed out of the plane of the paper is a magnetic field of 0.06 T. What is the average voltage induced as the flux is changing
Basic assumption of accounting : Identify which basic assumption of accounting is best described - The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate how does the information system

The effect of information systems may be quantified in every organization. Using specific examples in your own organization, illustrate how does the information system you use make your job easier? Why? How may it be improved?

  What considerations should the owners make in termination

What considerations should the owners make in this termination? Should they consider making an S election and then later, terminating the S corporation? If you were their tax advisor, what would you recommend?

  Determine the average costnbsp from the given datasvens

determine the average costnbsp from the given data.svens cookhouse is a popular restaurant located on lake union in

  Calculate the amortization of the patent

Using the straight-line method, calculate the amortization of the patent, copyright, and trademark.

  Question sara and john gleason engaged in some transactions

question sara and john gleason engaged in some transactions which they supposed to be like-kind exchanges. when they

  Case for global accounting standards

"The case for global accounting standards" by Professor Ann Tarca (UWA) and analyse what the key points are of the report. Then prepare a report either supporting or challenging the position of the author.

  Create a one page memorandum explaining marquettes

Create a one page memorandum explaining Marquettes estimated tax needs for its current year, providing the necessary supporting authorities.

  Question transfer pricing ethics goal congruence jeremiah

question transfer pricing ethics goal congruence. jeremiah industries manufactures high-grade aluminum luggage made

  Preparation of bank reconciliation statement from the given

preparation of bank reconciliation statement from the given information.the following information pertains to devries

  How many receivers must crest sell to earn monthly operation

How many receivers must Crest sell every month to break even? How many receivers must Crest sell to earn a monthly operating profit of $90,000 after taxes?

  Variable manufacturing overhead costs

Hydro Inc. manufactures water sensors used by scientists to measure water quality. For the most recent period ended Hydro manufactured and sold 53,250 sensors at a sales price of $290 per sensor.

  Selecting a for-profit organization of interest you will

selecting a for-profit organization of interest you will research an unusual or conflicting accounting principle that

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd