State the Most Applicable Accounting Rule for Each of the Following

question 27

Essay

State the most applicable accounting rule for each of the following situations.Each rule can be used more than once.An accounting rule can be a principle,assumption,constraint,or information characteristic.
1.Maids-R-Us recorded using supplies in the same period the supplies were used instead of expensing them in the period when they were purchased.
2.Clean Sweep cleaned an office building in October and was paid in November.Revenue was reported in October.
3.Team Shirts sends a set of financial statements prepared in accordance with GAAP to First Bank every month.
4.Mary Ellis,owner of Clean Sweep,has a bank account for her business separate from her personal bank account.
5.Jem's Jewelers purchased a three-month insurance policy on its diamond inventory.The cost of the policy was recorded as an asset.Later one-third of the asset was expensed each month over the three-month policy.

Recognize the effects of shifts in the aggregate expenditure line on real GDP.

Understand the principles of bond pricing and the factors that influence bond prices.

Identify the types of bonds and their unique characteristics.

Comprehend the concept of yield to maturity and how to calculate it.

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Definitions:

Aggregate

refers to the total amount or sum of individual parts in economics or finance.

Desired Money Holding

The preference of individuals or firms for holding cash or liquid assets based on expected financial needs or uncertainties.

Aggregate Demand

The full extent of demand for all goods and services within an economy, measured against a specified price level across a given temporal span.

Employment Act of 1946

A United States federal law aiming to promote maximum employment, production, and purchasing power through economic stability policies.