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.

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Definitions:

Push Manufacturing

The traditional approach to manufacturing in which products are manufactured according to a production schedule based on estimated sales; the schedule pushes product into inventory before customer orders are received.

Make to Order

A production strategy where manufacturing starts only after a customer places an order, tailoring products to specific customer requirements.

Lean Environment

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value activities.

Raw Materials

Basic materials used in the production process, not yet transformed into final products.