- Determine the account and amount to be debited and the account and amount to be credited for the following adjustment:
During December, the firm received $6,000 in fees in advance and properly recorded the amount as Unearned Fees. An analysis shows that $2,000 applies to services provided in December.
- Identify the term being defined or described by the following statement: The branch of accounting that is concerned with the recording of transactions using generally accepted accounting principles for a business or other economic unit and with a periodic preparation of various statements from such records.
Which accounting concept can be used by some companies to justify the use of the direct write-off method of accounting for uncollectible accounts?
The entity concept.
The materiality concept.
The going concern concept.
The monetary principle.
Which of the following is NOT a qualitative characteristic of accounting information according to the FASB’s conceptual framework?
A) Neutrality.
B) Timeliness.
C) Predictive value.
D) Auditor independence.