Identifying Accounting Principles

question 96

Essay

Identifying accounting principles.

Indicate the accounting principle or procedure apparently used to record each of the following independent transactions. Also, describe the transaction or event recorded in each case.
a. Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Dividend Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

b. Unrealized Holding Loss on
Marketable Securities Available for Sale . . . . . . . . . . . . . . . . . . . . X
Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

c. Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Investment in Affiliated Company. . . . . . . . . . . . . . . . . . . . . . X

Dividend declared and received from affiliated company.

d. Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . X

e. Rent Expense for Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment in Affiliated Company. . . . . . . . . . . . . . . . . . . . . . . . . . . X
Equity in Earnings of Affiliated Company . . . . . . . . . . . . . . . . X

g. Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

h. Loss from Price Decline of Inventories. . . . . . . . . . . . . . . . . . . . . . . X
Merchandise Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

i. Liability Under Long-Term Lease . . . . . . . . . . . . . . . . . . . . . . . . X
Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

j. Treasury Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

k. Interest Rate Swap Contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
Gain on Remeasurement of Swap Contract
(Income Statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

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Definitions:

Task Behaviors

refer to the actions and activities an individual performs in order to complete specific objectives or tasks.

Initiating Structure

A leadership behavior that focuses on defining roles, tasks, and the structures necessary to achieve goals efficiently.

Labeled

The process of assigning a name, category, or description to individuals or groups based on perceived attributes, often influencing how they are perceived and treated by others.

Country Club

A management style focused on creating a comfortable and friendly work environment, often prioritizing the welfare and happiness of employees over strict productivity or performance measures.