怀尔德会计学原理（答案）chapter_03

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1、资料Chapter3AdjustingAccountsandPreparingFinancialStatementsQUESTIONS1.Thecashbasisofaccountingreportsrevenueswhencashisreceivedwhiletheaccrualbasisreportsrevenueswhentheyareearned.Thecashbasisreportsexpenseswhencashispaidwhiletheaccrualbasisreportsexpenseswhentheyareincur

2、redandmatchedwithrevenuestheygenerated.2.Theaccrualbasisofaccountinggenerallyprovidesabetterindicationofcompanyperformanceandfinancialconditionthandoesthecashbasis.Also,theaccrualbasisincreasesthecomparabilityoffinancialstatementsfromoneperiodtothenext.Thus,businessdecis

3、ionmakersgenerallyprefertheaccrualbasis.3.Businessesthathavemajorseasonalvariationsinsalesaremostlikelytoselectthenaturalbusinessyearasthefiscalyear.4.Aprepaidexpenseisanitempaidforinadvanceofreceivingitsbenefits.Assuch,itisreportedasanassetonthebalancesheet.5.Long-termt

4、angibleplantassetssuchasequipment,buildings,andmachineryleadtoadjustmentsfordepreciation.Generally,landistheonlylong-termtangibleplantassetthatdoesnotrequiredepreciation.6.TheAccumulatedDepreciationcontraaccountisusedfordepreciation.Itprovidesfinancialstatementuserswitha

5、dditionalinformationabouttherelativeageoftheassets.Withoutthecontraaccountinformation,thereaderwouldnotbeabletotellwhethertheassetsareneworinneedofreplacement.7.Unearnedrevenuereferstocashreceivedinadvanceofprovidingproductsandservices.Anothernameforunearnedrevenueisdefe

6、rredrevenue.Itisreportedasaliabilityonthebalancesheet.8.Accruedrevenueisrevenuethatisearnedbutisnotyetreceivedincash(and/orotherassets)andthecustomerhasnotbeenbilledpriortotheendoftheperiod.Therefore,end-of-periodadjustmentsaremadetorecordaccruedrevenue.Examplesareintere

7、stincomethathasbeenearnedbutnotcollectedandrevenuesfromservicesperformedthatareneithercollectednorbilled.9.AIfprepaidexpensesareinitiallyrecordedwithdebitstoexpenseaccounts,thentheprepaidexpensesassetaccountsaredebitedintheadjustingentries..资料10.ForBestBuy,alloftheaccoun

8、tsunderthecategoryofPropertyandEquipment(exceptforLand),requireadjustingentries.Theexpenserelatedtothed