You Are Reviewing the Accounting Records of April's Attic,owned by April

question 227

Essay

You are reviewing the accounting records of April's Attic,owned by April Lapierre.You have uncovered the following situations.Compose a memo to Ms.Lapierre.Cite the appropriate accounting principle and suggest an action for each separate item.

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Definitions:

Advertising Regulation

Refers to the laws and rules governing how products and services can be promoted to the public.

Truth in Lending Act

A federal law designed to protect consumers in their dealings with lenders and creditors by requiring clear disclosure of loan terms and costs.

Revolving Credit

A credit agreement that allows a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.

Magnuson-Moss Act

A federal law enacted to protect consumers from deceptive warranty practices, improving the enforceability of warranties on consumer products.