Questions from Financial Accounting

Q: Discuss the realization principle and how it is applied in the recognition

Discuss the realization principle and how it is applied in the recognition of revenue. Does the receipt of cash for customers necessarily coincide with the recognition of revenue? Explain.

Q: Coyne Corporation recently hired Elaine Herrold as its new bookkeeper. Herrold

Coyne Corporation recently hired Elaine Herrold as its new bookkeeper. Herrold was not very experienced and made seven recording errors during the last accounting period. The nature of each error is d...

Q: Explain how Carnival Corporation accounts for customer deposits as passengers purchase cruise

Explain how Carnival Corporation accounts for customer deposits as passengers purchase cruise tickets in advance.

Q: Stephen Corporation recently hired Tom Waters as its new bookkeeper. Waters

Stephen Corporation recently hired Tom Waters as its new bookkeeper. Waters is very inexperienced and has made seven recording errors during the last accounting period. The nature of each error is des...

Q: Discuss the matching principle and how it is applied in the recognition

Discuss the matching principle and how it is applied in the recognition of expenses. Does the payment of cash necessarily coincide with the recognition of an expense? Explain.

Q: The concept of materiality is an underlying principle of financial reporting.

The concept of materiality is an underlying principle of financial reporting. a. Briefly explain the concept of materiality. b. Is $2,500 a material dollar amount? Explain. c. Describe two ways in...

Q: Why does the purchase of a one-year insurance policy four

Why does the purchase of a one-year insurance policy four months ago give rise to insurance expense in the current month?

Q: If services have been rendered to customers during the current accounting period

If services have been rendered to customers during the current accounting period but no revenue has been recorded and no bill has been sent to the customers, why is an adjusting entry needed? What typ...

Q: What is meant by the term unearned revenue?Where should an

What is meant by the term unearned revenue?Where should an unearned revenue account appear in the financial statements? As the work is done, what happens to the balance of an unearned revenue account?...

Q: What is the purpose of making adjusting entries? Your answer should

What is the purpose of making adjusting entries? Your answer should relate adjusting entries to the goals of accrual accounting.