Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the following two questions. Please use your own words/paraphrase properly and keep the marks in your mind. Thank you Question 4 (25 marks)

Please answer the following two questions. Please use your own words/paraphrase properly and keep the marks in your mind. Thank you

image text in transcribed
Question 4 (25 marks) a) A company has an extensive customer base. Over many years, it has built a detailed customer list, which includes various data including demographics, contact details, purchasing history and preferences. It has spent quite a lot of resources on developing this customer list so that it can effectively target marking campaigns and manage customer relations. A number of businesses have approached the company to purchase their customer list and have offered prices from $60 000 to $210 000. However, the company has decided not to sell at this stage. Q4-a Explain whether this customer list would meet the definition and recognition criteria of an asset, applying the principles in 2018 Conceptual Framework. (15 marks) Unanswered Save Q4-b Professional judgement plays an important role in financial reporting. Identify five areas in which the accountant preparing financial statements must make professional judgements that will affect the content of the statements. You are required to indicate at least two affected accounts in each area you identified. (10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Davis, Charles E., Elizabeth

1st Edition

0471699608, 978-0471699606

More Books

Students also viewed these Accounting questions

Question

1. I try to create an image of the message

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago