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Unformatted text preview: chp(13) 12- Unearned revenue are usually recorded in a liability account when there are payments that were recei When the good or service are provided, this account balance is decrease and a revenue account is in 13- Compensated absences are any times payed vacations, holidays or sick days for an employee. Companies are usually obligated to pay for these days off required by the matching principle to record For example and plane airline that sells tickets for future flights. 14- The expense is recorded each accounting period that an employee works by debiting the expense and 19- Contingent liability is a potential liability upon futre event occuring or not occuring. For example a com a current liability is susceptible to precise measurement because the date of payment, the payee, and 21- Under the cash basis-basis method warranty costs are charged to expense in the period in which the Under the accrual method, a provision for warranty costs is made at the time of sale or as the producti 22- Under the US GAAP, companies may not record provisions for future operating losses. Such provision 31- a) Liability for goods purchased on credit should be recorded when title passes to the purchaser. If the b) Officers salaries should be recorded when they become due at the end of a pay period c) A special bonus to employees should be recorded when approved by the board of directores or per d) Dividends should be recorded when they have been declared by the board of directors....
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This note was uploaded on 04/14/2011 for the course ACCT 3202 taught by Professor Kenmichael during the Spring '11 term at University of Minnesota Duluth.
- Spring '11