ACCO 310 Study Guide - Midterm Guide: Financial Statement, Revenue Recognition, Time Deposit
23 Sep 2015
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Question 1: c, c, c, c, b, d, c, c, c, a, a, c, a, b, c, d, b, b, a, c, d, b, c. The above can also be shown in one single entry as follows: The above can also be shown in two separate entries as follows: *1 bad debts expense can be shown separately from other expenses, but the total of other expenses and bad debts expense should still be the same i. e. ,000 in 2012 and ,000 in 2011. There are many correct answers to this question. Matching: the company does not record depreciation at all and fails to record rent expense in the correct period which violates the matching principle. This problem is rectified by recording depreciation and revising the rent expense for the unused fuel. Comparability: the change in estimate for doubtful accounts violates comparability since the amounts in 2011 and 2012 are not the same.
