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Portion 1:
Please post your feedback to each these questions.
1. When do accountants recognize revenue? Why is this so important in an accrual accounting system?
2. Depreciation is cost allocation not valuation and accumulated depreciation is a sum of cash being accumulated for the replacement of fixed assets. Do you agree? Explain your answer?
Portion 2:
Please post your feedback to these questions below.
In what ways do the elements of the four financial statements interact with one another?
How might changing one of the financial statements affect the other financial statements?
Why is it essential to understand the relationship between the financial statements?
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