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Q: How establishing an allowance account satisfies the expense recognition principle?
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Continue Learning about Accounting

Who is considered a dependent for income tax?

Whoever satisfies the criteria listed in the income tax instruction booklet.


What are the objectives of operational feasibility test?

To determine how well a given proposed information system a) solves the problems with the current information system shown by the problem analysis b) takes advantage of the opportunities pointed out in the Scope Definition c) satisfies the system requirements from the requirements analysis phase Also, with what is currently known about the problem itself and the estimated cost of the solution, determine if the problem is worth solving.


What is a reliable medical billing software?

A reliable medical billing software is reliable when it's been made secure enough to manage billing transactions. Also, medical softwares who are HIPAA certified, are definitely reliable. HIPAA is the acronym for the Health Insurance Portability and Accountability Act of 1996, the first comprehensive federal protective act ensuring the privacy of patient's personal health information. All healthcare practice management software today, including medical billing and coding software, must be HIPAA compliant medical billing software. When searching for medical billing and coding software, finding HIPAA compliant medical billing software should be at the top of your list.


What are the major audit risks faced by a private company?

The less a private company adheres to the following principles, the greater the business risk; in other words, distance your company operations from these stated principles and your risk increases; so, an IDEAL business: (1) The ideal business sells the world, rather than a single neighborhood or even a single city or state. In other words, it has an unlimited global market (and today this is more important than ever, since world markets have now opened up to an extent unparalleled in my lifetime). By the way, how many times have you seen a retail store that has been doing well for years -- then another bigger and better retail store moves nearby, and it's kaput for the first store. (2) The ideal business offers a product which enjoys an "inelastic" demand. Inelastic refers to a product that people need or desire -- almost regardless of price. (3) The ideal business sells a product which cannot be easily substituted or copied. This means that the product is an original or at least it's something that can be copyrighted or patented. (4) The ideal business has minimal labor requirements (the fewer personnel, the better). Today's example of this is the much-talked about "virtual corporation." The virtual corporation may consist of an office with three executives, where literally all manufacturing and services are farmed out to other companies. (5) The ideal business enjoys low overhead. It does not need an expensive location; it does not need large amounts of electricity, advertising, legal advice, high-priced employees, large inventory, etc. (6) The ideal business does not require big cash outlays or major investments in equipment. In other words, it does not tie up your capital (incidentally, one of the major reasons for new-business failure is under-capitalization). (7) The ideal business enjoys cash billings. In other words, it does not tie up your capital with lengthy or complex credit terms. (8) The ideal business is relatively free of all kinds of government and industry regulations and strictures (and if you're now in your own business, you most definitely know what I mean with this one). (9) The ideal business is portable or easily moveable. This means that you can take your business (and yourself) anywhere you want -- Nevada, Florida, Texas, Washington, S. Dakota (none have state income taxes) or hey, maybe even Monte Carlo or Switzerland or the south of France. (10) Here's a crucial one that's often overlooked; the ideal business satisfies your intellectual (and often emotional) needs. There's nothing like being fascinated with what you're doing. When that happens, you're not working, you're having fun. (11) The ideal business leaves you with free time. In other words, it doesn't require your labor and attention 12, 16 or 18 hours a day (my lawyer wife, who leaves the house at 6:30 AM and comes home at 6:30 PM and often later, has been well aware of this one). (12) Super-important: the ideal business is one in which your income is not limited by your personal output (lawyers and doctors have this problem). No, in the ideal business you can sell 10,000 customers as easily as you sell one (publishing is an example).


Related questions

What satisfies delivery criteria for software revenue recognition purposes when a customer purchases additional user licenses for software that has been previously delivered?

As soon as the other three criteria are satisfied (agreement, probable payment, set fee), then the software can be considered "delivered."


What is another name for a parallelogram with the same length and the same angles?

A SQUARE A rectangle satisfies the angles but not the lengths. A rhombus satisfies the length, but not the angles. A parallelogram neither satisfies length nor angles.


What does it take in order to bring resolution when there is conflict?

something that satisfies both party's. or just satisfies the most powerful party.


How you can satisfies your customer?

eBay icenay


How and why are oceans satisfied by density?

it satisfies :)


What actors and actresses appeared in Mild But She Satisfies - 1928?

The cast of Mild But She Satisfies - 1928 includes: Al Cooke Alberta Vaughn


A value that satisfies an open sentence?

a solution


If the ordered pair (3-2) satisfies one of the two linear equations in a system how can you tell whether the point satisfies the other equation of the system?

Substitute the values for the two variables in the second equation. If the resulting equation is true then the point satisfies the second equation and if not, it does not.


What constitutes a successful exam answer?

An answer that completely satisfies the question.


What is the value that satisfies an equation?

It is the solution of the given equation.


Why do girls let dogs lick them?

it sexually satisfies them


The value of a variable which satisfies an equation is called to the equation?

a solution