What is the expense recognition principle

Assignment Help Accounting Basics
Reference no: EM132015460

Question: 1: I just watched the video about journal and ledger by Jim and Earl Stice. According to the video, you record every transaction by classifying and grouping similar items. Using booking procedures, you post all entries into the right accounts. Posting means to sort all journal entries amounts and copying the information in the appropriate accounts.

Journals and ledgers are where business transactions are recorded. You first record detail information for each individual account into the journal then you transferred the information to the ledger. According to the video, all accounts are maintained in an accounting record called a ledger. The information in a ledger has the highest information for which trial balances and financial statements are produced. Accountants used the credits and debits recorded in ledger or "books" prepared by bookkeepers to create a company's financial statements. Stice explains that in the journal, it identifies the account posted in it, in the ledger, it identifies the page on which the entry appears in the journal.

2: It's funny that you mentioned that this repeated each reporting period, and its so true. I do like accounting, however; the job for the most part is extremely repetitive. Once you have hit a certain plateau there isn't much more to know. I'm hoping to move to another department that still deals with the accounting side like tax or permits just do something different!

3: What is the revenue recognition principle? What is the expense recognition principle? In your opinion, why are these important to financial reporting?

4: The revenue recognition (fee income)would be anything payed to the company, whether is its placed in accounts receivable or regular payment to company. Expenses are regular bills, and additional fees that need to be payed from the company. For example rent and utility, salaries or paying for cleaning service. Its not apart of assets but is counted as debit because it's give to company or employees, and from cash.

It's important because it like balance a check book, if one transaction is missing, you would be short changed. Because it you don't get payment you can't pay.

Reference no: EM132015460

Questions Cloud

Sodium sulfide solution : When 12.0 mL of a 6.57×10-4 M iron(II) iodide solution is combined with 22.0 mL of a 5.47×10-4 M sodium sulfide solution does a precipitate form?
Calculate the equilibrium constant for reaction : Consider the insoluble compound iron(II) sulfide , FeS . The iron(II) ion also forms a complex with cyanide ions . What is the balanced net ionic equation
Develop a qualitative research plan for a topic : Develop a qualitative research plan for a topic and research question applicable to a specific field of specialization.
Heating two different samples of water at sea level : While heating two different samples of water at sea level, one boils at 102°C and one boils at 99.2°C. Calculate the percent error for each sample.
What is the expense recognition principle : What is the revenue recognition principle? What is the expense recognition principle? In your opinion, why are these important to financial reporting?
Perform a security evaluation : CO4509 - Computer Security - Perform a security evaluation on the provided virtual machine image. You have not been supplied with either the IP address
Concentration of hydroxide ion : What is the concentration of hydroxide ion when phosphate ion begins to precipitate?
Balanced net ionic equation : Consider the insoluble compound zinc sulfide , ZnS. The zinc ion also forms a complex with hydroxide ions. What is the balanced net ionic equation
Discuss about bystander of violence from films : Locate, describe and analyze one example of a bystander of violence from films. The first sentence should have the word "bystander" and "film" within it.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Sarbanes-oxley act-prevention detection

Summarize your ideas about internal controls. An introduction to internal controls, explaining in your own words the two primary goals of internal control. A description of how the Sarbanes-Oxley Act of 2002 has affected internal controls

  Classify the cash flows from given transactions

Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.

  Problem regarding the fact finding trip

a) Make a decision tree for these decisions. b) Should the company send the fact finding trip? Explain.

  Calculate their medical loss ratio

Look up the annual report and income statement of a publicly-traded health insurance company. Calculate their Medical Loss Ratio

  What types of training will george find for the cfo position

Role of controller, role of chief financial officer. George Jimenez is the controller at Balkin Electronics, a manufacturer of devices for the computer industry

  Technology provides a vast array of communication outlets

Communicating in the workplace coupled with advances in technology provides a vast array of communication outlets. Various forms include formal writing, cell phones, pagers, e-mail, snail mail, and a culmination of social media networks. As indivi..

  What is the present value on january one

What is the present value on January 1, 2016, of $40,000 due on January 1, 2020, and discounted at 11% compounded semiannually?

  Justification for using different meaurement focuses

Discuss the justification for using the economic resources measurement focus and accrual basis of accounting by a municipally operated water utility.

  Capriati corporation commenced operations in early 2012 the

capriati corporation commenced operations in early 2012. the corporation incurred 55130 of costs such as fees to

  Name on special purpose managment accounting report

Include the name of the report, the information that it would contain, and how frequently it should be issued?

  Prepare journal entries for all of these transactions

Following are selected transactions of White Corporation: Prepare journal entries for all of these transactions

  Deposits in transit not recorded by the bank

1. Balance per the bank on May 31, $8,000 2. Deposits in transit not recorded by the bank, $975

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