Solution-Determine whether such costs should appear

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.

User Account

All Pages

Determine whether such costs should appear

Reference no: EM13513811

Reference no: EM13513811

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT