Ac 550--Week 1 Assignment Essay

996 WordsJan 20, 20134 Pages
ACC-550 / Week 1 Homework CHAPTER 1 CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. True 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. False (all companies must comply to all standards and all disclosure requirements). 3. The primary governmental body that has influence over the FASB is the SEC. True 4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. False CA1-3…show more content…
Expense recognition principle (m) An allowance for doubtful accounts is established. Historical cost principal (n) Goodwill is recorded only at time of purchase. Expense recognition principle (o) A company charges its sales commission costs to expense. Principles revenue and expense recognition CHAPTER 3 E3-1 April 2 Cash 30,000 Equipment 14,000 Owner’s Capital 44,000 April 2: No transactions April 3 Supplies 700 Account Payable 700 April 7 Rent Expense 600 Cash 600 April 11 Account Receivable 1,100 Revenue 1,100 April 12 Cash 3,200 Unearned Revenue 3,200 April 17 Cash 2,300 Revenue 2,300 April 21 Insurance Expense 110 Cash 110 April 30 Salaries Expense

More about Ac 550--Week 1 Assignment Essay

Open Document