To achieve a proper matching of sales revenues and expenses, a company must estimate the amount...
To achieve a proper matching of sales revenues and expenses, a company must estimate the amount of bad debt expense to report on the income statement as an end-of-period adjustment, true or false.
Homework Answers
Answer: True
Explanation:
Matching principle requires that Revenues and any related expenses to be recognized together in the same accounting period.
Bad debt expense is an estimate of uncollectible. It's related to revenue. It means bad debt expense estimated on the basis of revenue.
So that, Bad debt expense and revenue should be recognized together in the same accounting period in the income statement.
Hence, to achieve a proper matching of sales revenues and expenses, a company must estimate the amount of bad debt expense to report on the income statement as an end-of-period adjustment
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please provide answers with
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please provide answers with
explanations
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september qato 190 Hoool A company that changes from the declining balance method of depreciation for previously recorded assets to the straight line method should report the change as ain a./ change in accounting principle. ( change in accounting estimate prior period adjustment Ud discontinued item 7. The term "comprehensive income" as defined by the FASB a, must be reported on the face of the income statement includes all changes in equity during a period except those resulting from ✓...
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