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OlgaM077 [116]
3 years ago
10

The primary objective of expense recognition is to Promote comparability between financial statements of different periods. Prov

ide timely information to decision makers. Provide full disclosure. Record expenses in the period that related revenues are recognized.
Business
1 answer:
Mumz [18]3 years ago
8 0

Answer:

Record expenses in the period that related revenues are recognized.

Explanation:

Revenues are recognized when earned, not necessarily when cash is received.

According to the accrual basis accounting, transactions are recorded in the periods in which the event occur. Companies recognize revenues when they perform services or sell products (rather than when they recived cash). Expenses are recognized when incurred (rather than when paid).

This principal is in accordance with generally accepted accounting principles (GAAP).

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4 years ago
Absorption costing income would be ____ variable costing income. a. $150,000 less than b. $150,000 greater than c. $240,000 less
Dafna11 [192]

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E. None of the above

7 0
4 years ago
A manager must ensure fairness and __________ in considering a promotion of an employee.
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4 years ago
Based on this​ information, you can say that the overall​ "price level"​ ___________. A. remained unchanged during the year sinc
Harman [31]

Answer:

D. there is not enough information to determine the change in the overall price level.

Explanation:

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It is only the availability of two or more sets of such information that will enable a comparison to be made and for conclusions to be drawn.

3 0
3 years ago
You work in the finance division of a company listed in the Stock Exchange. You have just learned that your supervisor has been
stepladder [879]

Answer:

  • Yes it is.
  • Ethical issue ⇒ Insider Trading.

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Trading on the stock exchange is supposed to be as fair as possible so that every investor has a fair chance of making returns. If a person - like this supervisor - is using information that is material but not publicly disclosed yet to trade on markets, the fairness of the market is compromised because the person will have an edge over other investors which will enable them make unfair profits.

Information on quarterly returns is usually material so we can expect it to be material here as well which means that the supervisor is engaged in insider trading.

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8 0
3 years ago
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