Acct

Assignment Questions Lorren Rodriguez Acc/280 October 27, 2011 State two generally accepted fib principles that worry to adjusting the accounts Two generally accepted score principles that affiliate to adjusting accounts ar the revenue credit entry principle and the twin(a) principle. The recognition principle states that revenues should be make loved in the accounting menses in which they were earned. The matching principle matches expenses with revenues in the period when the smart set makes efforts to generate those revenues (Weygandt, 2008, p.96). rick fenland, a lawyer, accepts a legal dispute in March, performs the work in April, and is paying in May. If Marshs law family prep ars periodic fiscal statements, when should it accredit revenue from this conflict? why? We motif first to even up if Rick Marshs law house is utilise the accrual-basis or cash-basis accounting. In accrual-basis accounting, income and expenses be reputationed when the services be given or authentic (no matter if they are paid or not).

In cash-basis accounting, revenues and expenses are recorded when cash is really received or spent. Therefore, Rick Marshs law firm will recognize revenue from the legal engagement in April if his law firm is using the accrual-basis accounting. Conversely, the law firm will record the revenues in May if it is using the cash-basis accounting. Why do accrual-basis fina ncial statements provide more information th! an cash-basis statements? Accrual-basis financial statements provide more useful information than the cash-basis ones because they are lucid with the matching principle that aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses (Larson, Wild, & Chiappetta, 2005, p. 96). Furthermore, accrual-basis financial statements...If you compulsion to get a full-of-the-moon essay, order it on our website: BestEssayCheap.com

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