Identify the Accounting Concept or Principle That Gives the Most

question 144

Essay

Identify the accounting concept or principle that gives the most direction on how to account for each of the following situations.
A. It's been a particularly slow month, and the company will have a net loss for the first quarter. Management is considering not following its practice of reporting quarterly earnings to the public.
B. Salaries of the factory workers for November will not be paid until December.
C. A telephone bill is received on the last day of the month and will be paid next year.
D. A contractor is building a new development and received an advance for work to be completed over the next 2 years.
E. An accountant prepares tax returns for clients and bills them after the work is completed. It usually takes 30 days to receive payment from customers.

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Definitions:

Autonomic Fibres

Nerve fibers that are part of the autonomic nervous system, controlling involuntary bodily functions such as heart rate and digestion.

Sympathetic Fibres

Nerve fibers of the sympathetic nervous system that are involved in the body's fight or flight response, affecting functions such as heart rate and blood pressure.

Afferent Nervous System

Part of the peripheral nervous system that carries sensory information from the sensory organs to the brain.

Efferent Nervous System

Part of the nervous system responsible for carrying signals away from the central nervous system towards muscles to cause movement.