Provide three examples of expense recognition justified by (a) A direct relationship with revenue (cause and effect)
Question:
(a) A direct relationship with revenue (cause and effect) and
(b) An indirect relationship with revenue (the consumption of an asset or an increase in a liability during a period in which revenue is recognized).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
a Many examples exist Three common examples of direct cause and effect are 1 Cost of goods sol...View the full answer
Answered By
Mario Alvarez
I teach Statistics and Probability for students of my university ( Univerisity Centroamerican Jose Simeon Canas) in my free time and when students ask for me, I prepare and teach students that are in courses of Statistics and Probability. Also I teach students of the University Francisco Gavidia and Universidad of El Salvador that need help in some topics about Statistics, Probability, Math, Calculus. I love teaching Statistics and Probability! Why me?
** I have experience in Statistics and Probability topics for middle school, high school and university.
** I always want to share my knowledge with my students and have a great relationship with them.
** I have experience working with students online.
** I am very patient with my students and highly committed with them
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Question Posted:
Students also viewed these Finance questions
-
George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Number of Adjusted Basis $ 7,200 6,270 Date Purchased Shares Stock A 11/21/1993...
-
Provide three examples of tacit knowledge. Provide three examples of explicit knowledge.
-
Provide three examples of management decisions that benefit from CVP analysis.
-
AASB 102 prohibits the use of the LIFO method. What is the argument against the use of LIFO?
-
ForCo, a foreign corporation not engaged in a U.S. trade or business, received a $600,000 dividend from USCo, a domestic corporation. ForCo incurred $45,000 in expenses related to earning the...
-
John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....
-
White Top Rafters uses the direct write-off method to account for bad debts. Record the following transactions that occurred during the year: May 3 Nov 8 Dec 10 Provided $970 of services to Sam...
-
Consider Mount Snow from S8- 3. Assume that Mount Snows reputation has diminished and other resorts in the vicinity are charging only $ 66 per lift ticket. Mount Snow has be-come a price- taker and...
-
Calculate January Year 1 cost of goods sold for Mugudia, assuming that Mugudia uses the periodic inventory system and an weighted - average cost flow assumption.
-
EngProjects, Inc., is an engineering firm with approximately 500 engineers in different specialties. The company keeps records on all employees, their skills, assigned projects, and the departments...
-
Identify the working capital accounts related to (a) Revenues recognized and deferred, (b) Cost of goods sold, (c) Employee salary and wages, and (d) Income tax expense. For each account, indicate...
-
Using the following key, identify the effects of the following transactions or conditions on the various financial statement elements: I = increases; D = decreases; NE = noeffect. Assets Liabilities...
-
Use Table 12.8 to find the specified area. Table 12.8: Between z = 1.23 and z = 1.81 Table of Areas to the Left of z When z Is Negative 00 .02 .04 .05 .01 .03 .06 .07 .08 .09 -3.4 .0003 .0003 .0003...
-
A news caster earns $27,800 and wants to invest 10% of his/her monthly salary to save for retirement in 22 years. If he/she invests this money at 5.9% compounded monthly, how much money will he/she...
-
Ashley Speer Sunglasses sell for about $157 per pair. Suppose that the company incurs the following average costs per pair: (Click the icon to view the cost information.) Ashley Speer has enough idle...
-
How do environmental gradients and biotic interactions shape species distributions and community assembly processes, and what are the implications of these patterns for ecosystem resilience and...
-
Carbon dioxide (CO2) fills a closed, rigid tank fitted with a paddle wheel, initially at 80\ deg F, 50 lbf/in 2, and a volume of 1.6 ft3. The gas is stirred until its temperature is 500\deg F. During...
-
Determine the four missing amounts using financial statement relationships. Revenues Expenses Net income Dividends declared during the year Retained earnings Beginning Ending Total assets Beginning...
-
If the marginal utility you derived from the last video game you played was $1.75 and the game cost $0.50 to play, _______. a) you have been playing the game too long b) you havent been playing the...
-
In Problem use geometric formulas to find the unsigned area between the graph of y = f(x) and the x axis over the indicated interval. f(x) = x + 5; [0, 4]
-
Carbon dioxide functions as a greenhouse gas by _________. A. Interfering with waters ability to absorb heat; B. Increasing the random molecular motions of oxygen; C. Allowing radiation from the sun...
-
Distinguish between a sales analysis and a performance analysis.
-
Carefully explain what the iceberg principle should mean to the marketing manager.
-
Explain the meaning of the comparative performance and comparative cost data in Exhibits 18-3 and 18-4. Why does it appear that eliminating sales areas D and E would be profit able?
-
On January 1, the first day of the fiscal year, a member of a nonprofit hospital's board of directors passed away. His will provided a $35,000 contribution to the hospital to upgrade the skills of...
-
2. (a) Label the phases in the phase diagram shown in Figure Q2. (b) For points 1 and 3 marked in the phase diagram determine compositions of the phases present and the relative fractions of the...
-
Can you elucidate the significance of deposit insurance schemes in fostering public confidence in the banking system, detailing how these mechanisms operate to protect depositors and mitigate the...
Study smarter with the SolutionInn App