Accounts Case 5-3 - Case 5-3 Joan Holtz 1. If electricity...

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Unformatted text preview: Case 5-3 Joan Holtz 1. If electricity usage tended to be fairly constant from month to month, the unreported usage in December would be reported in January, and overall revenues for this year would be materially correct. 2. I might be counted in few different ways. First, at the balance sheet it might be counted as $10 000 account payable and $10 000 account receivable (counting the whole amount as (revenue in 2001 on the grounds that it is in hand and that any specific services are undefined and/or separately billable). The other option is to take the more conservative approach of counting only $5,000 (or other percentage of $10 000) as revenue in 2001 on the grounds that the service involved. 3. If the cruise happens in 2002, its profit of $20 000 will be counted as a revenue in 2001....
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Accounts Case 5-3 - Case 5-3 Joan Holtz 1. If electricity...

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