D changing inventory methods changes the inventory

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D) Changing inventory methods changes the inventory value on the financials.  An explanatio to why the change in method and the effect the change had on the value of the inventory m be disclosed in the notes on the financials. E2-7 A) The car is listed as miscellaneous because it is not for business use and cash credit for the payment of the car. B) This records the actual price of the inventory that will be sold.  The revenue recognition is  practiced at the company. C) The amount being sued for is large enough to be considered a material loss if the compan loses the case. D) Expense recognition is practiced to show and increase as the expense has incurred. E) This staying as a possible cash asset is not a probable outcome.  Writing this off is a measurement practice. F) Recording revenue when earned at the sale is done when earned/payed for the equipment. E25-8
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A) The building had been depreciated too quickly anhd was valued for more than the  bo9oks showed.  Charging retained earnings shows the company has earned money by the building's value increasing. B) This is a significant increase in value for the purchases.  This increase in value  increased the assets in the books through inventory. C) The equipment was valued at the cost that was paid and this is cost-benefit relation- ship because it would cost more to find the value, than to just value the equipment at the purchase price. D) Since the gain was going towards new equipment, it can be amortized over the life to allow for the purchase of new equipment as long as it is disclosed in the financials. E) Recorded revenue when earned. CA2-2 A) Benefits from the FASB's conceptual framework study are understanding that not  everyone is currently using the same standards and it is important to inforce that  concept.  Understanding what investors are looking for and making sure that  quantitative information is given at high quality.  Just releasing a set of financials  with no understanding or background does not offer investors any understanding of the information. B) The most important quality is relevance and reliability.  This is because relevance and  reliability have the qualities that distinguish better more useful information from  inferior less useful information. C) Verifiability occurs when independent measures, using the same methods, obtain similar results. Representational faithfulness means that the numbers and descriptions match what  really existed or happened.
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  • Spring '10
  • George
  • Accounting, Net Income, Doubtful Accounts, total

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