questions: 1. Three aspects of financial accounting are recognition (when something should be recorded), measurement (how...

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questions: 1. Three aspects of financial accounting are recognition (when something should be recorded), measurement (how much to record), and reporting (how to disclose it, including display). To recognize a liability there must occur some event or circumstance that obligates the enterprise to make a future economic sacrifice. As in all areas of financial accounting, identifying the point at which a liability should be recognized (recorded) frequently involves some assumptions and conventions. For each of the following underlined items, when do you think the enterprise theoretically should recognize the liability (select A, B or C)? Use your accounting judgment-this is not intended to be a research project. Bonds payable A. When the bonds are issued. B. On the maturity date. C. Only in the event of default. Salaries payable A. On the date of the employment contract. B. When the salary is earned by the employee. C. On the day the salary is payable. Dividends Payable A. When the dividends are declared. B. On the date the dividends are payable. C. Only in the case of preferred dividends that are passed (not declared). Common stock dividends distributable A. When the dividends are declared. B. On the date the dividends are distributable. C. None of the above-stock dividends are not recognized as liabilities. Liability for pension benefits A. When benefits are earned during the service period. B. On the date the employee retires. C. When payable during the retirement period. questions: 1. Three aspects of financial accounting are recognition (when something should be recorded), measurement (how much to record), and reporting (how to disclose it, including display). To recognize a liability there must occur some event or circumstance that obligates the enterprise to make a future economic sacrifice. As in all areas of financial accounting, identifying the point at which a liability should be recognized (recorded) frequently involves some assumptions and conventions. For each of the following underlined items, when do you think the enterprise theoretically should recognize the liability (select A, B or C)? Use your accounting judgment-this is not intended to be a research project. Bonds payable A. When the bonds are issued. B. On the maturity date. C. Only in the event of default. Salaries payable A. On the date of the employment contract. B. When the salary is earned by the employee. C. On the day the salary is payable. Dividends Payable A. When the dividends are declared. B. On the date the dividends are payable. C. Only in the case of preferred dividends that are passed (not declared). Common stock dividends distributable A. When the dividends are declared. B. On the date the dividends are distributable. C. None of the above-stock dividends are not recognized as liabilities. Liability for pension benefits A. When benefits are earned during the service period. B. On the date the employee retires. C. When payable during the retirement period.