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E 3 1 Identify the accounting assumption, criteria, or objective that gives the most direction on how to account for each of the following situations:
E Identify the accounting assumption, criteria, or objective that gives the most direction on how to account for each of the following situations: The owner of a business desires monthly financial statements to measure the financial progress of the business on an ongoing basis. Expenses of $ must be accrued at the end of the period to measure income properly. A customer states her intention to switch travel agencies. Should the new travel agency record revenue based on this intention? Give the reason for your answer. Expenses of the period total $ This amount should be subtracted from revenue to compute the periods net income.
E Identify the accounting assumption, criteria, or objective that gives the most direction on how to account for each of the following situations:
The owner of a business desires monthly financial statements to measure the financial progress of the business on an ongoing basis.
Expenses of $ must be accrued at the end of the period to measure income properly.
A customer states her intention to switch travel agencies. Should the new travel agency record revenue based on this intention? Give the reason for your answer.
Expenses of the period total $ This amount should be subtracted from revenue to compute the periods net income.
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