In the Chart Below, Identify the Expense Recognition Method That

question 77

Essay

In the chart below, identify the expense recognition method that you feel is most appropriate and also explain why.
$$\begin{array} { | l | l | l | } \hline \text { Transaction } & \begin{array} { c } \text { Expense recognition } \\\text { method }\end{array} & \text { Why? } \\\hline \text { A. A company purchases computers for its } & & \\\text { marketing department. } & & \\\hline \text { B. A company purchases manufacturing } & & \\\text { equipment that is expected to produce } 25,000 & & \\\text { units. } & & \\\hline \text { C. A company incurs delivery costs on January 2 } & & \\\text { for a shipment of products sold seven days } & & \\ \text { earlier (before the year-end). }\\\hline\end{array}$$

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Definitions:

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; implies a desire to do a task well.

Big Five Trait

Refers to five broad domains or dimensions of personality that are used to describe human personality. These are openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Temperament

The inherent part of an individual's personality, including aspects such as mood, behavior tendencies, and emotional reactivity.

Behavioral Style

The characteristic way in which an individual acts or behaves in different situations.