ACC 280 WEEK 3 INDIVIDUAL ASSIGNMENT - ASSIGNMENTS FROM THE READING

ACC 280 WEEK 3 INDIVIDUAL ASSIGNMENT - ASSIGNMENTS FROM THE READING

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Week 3 Individual Assignments Assignments from the Readings Prepare written answers to the following assignments from Chapter 3 of the text, Financial Accounting 6th ed: a. Questions 2, 3, 4 and 8 b. Exercise E3-7 c. Exercise E3-8
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Individual Assignment: Ch. 3 Textbook Exercises 2. State two generally accepted accounting principles that relate to adjusting the accounts. Adjusting entries ensure that the revenue recognition and matching principles are followed. 3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marsh’s law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why? It should use the accrual basis, and record it in the period in which the events occur. For example, the law firm should recognize revenues when earned (rather than when they receive cash), it also means recognizing expenses when incurred (rather than when paid ). 4. Why do accrual-basis financial statements provide more useful information than cash-basis statements? Accrual-basis financial statements provide more useful information than cash basis. Cash-basis
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This note was uploaded on 11/21/2011 for the course ACC 280 280 taught by Professor Lindaking during the Spring '10 term at University of Phoenix.

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ACC 280 WEEK 3 INDIVIDUAL ASSIGNMENT - ASSIGNMENTS FROM THE READING

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