For Each of the Following, State Whether You Agree or Disagree

question 83

Essay

For each of the following, state whether you agree or disagree with the accounting treatment. What concepts support your view?
a)A company records all revenue when earned, whether it has been collected or not.
b)Payment of a three-year insurance policy is charged to insurance expense and not adjusted.
c)Because the December telephone bill did not arrive until January, no telephone expense was recorded for December.
d)Management of Classic Cars requires the accountants to prepare monthly financial statements.

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Definitions:

Secondary Purpose

An additional aim or intent beyond the primary goal, often adding value or context.

Negative Messages

Communications that convey unfavorable news, rejections, or feedback, often requiring careful wording to minimize impact.

Accept The Message

The process where the recipient comprehends and agrees with the information communicated to them.

De-Emphasize

To reduce the importance, stress, or emphasis placed on something.