Financial Accounting & Reporting Each response is right on the mark, leading to maximum points.
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Course
FAC1601 Financial Accounting & Reporting
Institution
FAC1601 Financial Accounting & Reporting
Page 9 of 106
Proprietary
Fiduciary - Answer Government--> modified accrual
Proprietary--> accrual
Fiduciary--> accrual
Modified Accrual - Answer Modified Accrual uses government funds. For example the revenues
are recorded only if they're MEASURABLE and AVAILABLE for paying current ...
name of operations such as major products/service 2) Use of estimates in preparation of financial
statement 3) Certain Significant estimates 4) Current vulnerability due to concentrations
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, What are General & Administration expense - Answer It's a part of operating expense because
operating expense includes selling and admin expense The admin expense applies to company as a whole
like fixed salaries etc
For example sales representative would be EXCLUDED FROM General and admin expense because
they're considered selling expense helping to promote sales
Included in $292,500 is the $30k cost of printing catalogues for a sales promotional campaign in January
20X2. Should this 30k be included in 20X1 expense? - Answer No this 30k should be deferred to
20X2 because that's what the costs are for unless it specifically states it's prepaid
Predictive value is an ingredient of - Answer Relevance
Qualitative characteristics of useful info, what are US and IFRS differences - Answer U.S. and
GAAP have the same qualitative characteristics of useful info
Both have
Element
Recognition
Measurement
Financial statements
Earnings
CF liquidity
When is amortization expense recorded? - Answer Amortization expense is recorded at END OF
THE YEAR SO 12/31/XX
For example, if a company was to eliminate the patent on 12/31/x2 then there is no amortization expense
on for x2
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