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Under the direct write-off method no attempt is made to match Bad Debt Expense to Sales Revenue in the same accounting period?
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What is an accounting system?
The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other, and in the cost account no attempt is made a aseparate record of the financial account transactiona
How is a government Accounting Classification Reference Number used in DFARS?
For all contracts, the contracting office assigns a two-digit ACRN to each line of accounting containing unique accounting information in accordance with the requirements contained in the Defense Federal Acquisition Regulation Supplement (DFARS). Obligations are established at the ACRN level to ensure that funds are available to cover disbursements. DFAS allocates the payments to the ACRNs in an attempt to match contractor payments to the corresponding obligations. Abiy
What are the answers to Warren Reeve Duchac Accounting?
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What is the purpose of depreciation?
Depreciation provides a means to report assets on the balance sheet at a more realistic value than original purchase prices. This makes the financial statements more meaningful to users. Depreciation has two main purposes. -- The first is to provide for proper matching of revenues and expenses. Fixed assets provide benefits to a company throughout their useful lives. Thus, some of the expense from purchasing the assets should be recognized during each period of the assets' estimated useful lives. For example, if a farming company buys a tractor, the tractor helps to provide revenue each period. It is appropriate that some of the cost of the tractor be recognized each period to "match" it with the revenue the tractor is producing. If the tractor was not depreciated and instead was expensed in the period in which it was purchased, that period would unfairly bear all of the cost of the tractor, and net income would be understated. Future periods would receive the revenue generated by the tractor but none of the associated costs, and net income in those periods would be overstated. -- The second purpose is to properly value fixed assets on the balance sheet and account for their devaluation over the course of their lives. If the tractor in the above example was purchased for $20,000, after one year of use it would no longer be worth $20,000. It might only be worth $15,000, for example. --- Depreciation is an application of the matching principle in accounting and is designed to reflect the fact that some assets are used to generate profits over multiple accounting periods. Using depreciation the cost of an asset is spread out (or "written off") over the number of periods you expect it to be of use (called the asset's "Useful Economic Life"). Some people, including some accountants, will tell you that depreciation is an attempt to show the reduction in the value of the asset. This is wrong. If you want to show the value of an asset then you revalue it.
Why do audit partners struggle with making tough accounting decisions that may be contrary to their clients position on the issue. What changes should the profession make to eliminate these obstacle?
This question is a very open one, and students' responses will reflect a wide variety of ideas. The variety of ideas should allow for a creative and stimulating in-class discussion. However, some of the key points that should be raised include the following. Public accounting is a highly competitive, service-oriented business. As is the case with most other service-offering enterprises, public accounting firms have a vital interest in pleasing their clients by providing value and excellent customer service. In order to provide excellent client service, partners may sometimes feel pressure to avoid taking tough stands on a client's accounting choices. Otherwise, partners may run the risk of losing clients to other accounting firms. Furthermore, public accounting firms are in the business of making money. As owners of a public accounting firm, partners are naturally interested in the financial performance of the firm because, among other reasons, partner income and bonuses depend on annual revenues. Partners are often responsible for revenue targets each year and aggressively attempt to reach these targets. One interesting note is that audit fee revenues from such companies as Enron are very lucrative- Andersen's audit fee at Enron was about $48 million per year. Finally, some argue that the provision of consulting, internal audit, and other services to auditing clients may have compromised the auditors' ability to be objective and take tough stands on questionable accounting practices. Along these lines, it is interesting to note that in 2000 Andersen earned more from Enron in consulting fees than in auditing fees, with consulting fees topping $50 million. In order to eliminate these obstacles, public accounting firms need to be committed to putting the public interest first. They need to be upfront with each client by affirming that even though the accounting firm desires to add value to the client's business, difficult decisions that are contrary to management's position on certain issues may have to be made to protect the interests of the investing public. By laying this foundation, difficult decisions will be easier to make when such circumstances arise. Firms may need to reformulate their performance evaluation and compensation practices to determine whether they provide incentives for local partners to take aggressive stances that may not be in the best interests of the firm as a whole. In addition, most large accounting firms require national approval for local office partners to sign off on certain complex or aggressive accounting positions, mitigating the sometimes strong individual pressures on local partners to please the client. Finally, the Sarbanes-Oxley Act of 2002 now makes it illegal for external auditors to perform internal auditing and a variety of management consulting services for the same company.
What Roosevelt's acts made an attempt to redistribute wealth?
It was the Revenue Act
What was the federal government's first major attempt to formalize accounting reporting standards?
The government's first major attempt at the formalization of authoritative reporting standards was in 1917 with the Federal Reserve Board's publication of Uniform Accounting.
Under the Articles of Confederation there was a failed attempt to raise revenue and pressure the British by enacting a?
quitrent
What was the revenue act of 1764?
The Revenue Act of 1764 was also known as the Sugar Act. This act was passed on April 5th, 1764 by the Parliament of Great Britain in an attempt to raise revenue through the taxation on sugar and molasses that were purchased by the colonists.
What is an accounting system?
The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other, and in the cost account no attempt is made a aseparate record of the financial account transactiona
What is an interlocking accounting system?
The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other, and in the cost account no attempt is made a aseparate record of the financial account transactiona
What would be a good thesis statement of a research essay titled Is it worth the risk and expense to attempt a manned mission to Mars?
A good thesis statement for a research essay titled, "Is it worth the risk and expense to attempt a manned mission to Mars", could be, "The knowledge and strategic advantage of a manned mission to Mars far outweighs the cost and risks".
In what year did Britain attempt to gain revenue by a tax on papers and documents creating a colonial uproar?
That would be the Stamp Act in 1765.
What is the historical background of Tanzania revenue authority?
Historically, Tanzania has focused on increasing revenue as opposed to improving efficiency. During the mid 1980's, all export taxes were removed in an attempt to increase exports. Income taxes were consistently reduced in the 1980's with the minimum rate raising since then.
Why does body temperature increase when dehydrated?
In hot climate, your body temperature increases easily as there is less water available for perspiration. It is an attempt of the body to conserve the body water, at the expense of body temperature.
What does the term Cost mean?
Cost management refers to how much it will cost a business to run. By having a cost management plan businesses can attempt to lower their costs therefore creating more revenue.
Can you recover photos on your digital camera if it has been formated?
It is highly unlikely that you would be able to recover the lost data. The highly slim chance is furthered by the expense of the tools required to attempt a data recovery.
