Acquisitions and Expenditures

• What are acquisitions and expenditures?
  • Examples of these are:

• What accounts are in this cycle?

• What is another name for this cycle?

• What are the inherent risks associated with this cycle?
  • What happens when you improperly capitalize expenditures?
  • According to FASB Statement Concepts, what are the 3 ways to recognize expenses?
  • Discuss each of the (4) basic acquisition and expenditure activities & describe the type of transactions involved in each activity.
  • Be sure to explain the bill of lading, voucher, voucher package (3 way match), receiving report, etc.
  • In many accounting systems how are liabilities recorded?
    • Because of this, what are two risks in the acquisition and expenditure cycle