怀尔德会计学原理答案Chapter_03

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1、.Chapter3AdjustingAccountsandPreparingFinancialStatementsQUESTIONS1.Thecashbasisofaccountingreportsrevenueswhencashisreceivedwhiletheaccrualbasisreportsrevenueswhentheyareearned.Thecashbasisreportsexpenseswhencashispaidwhiletheaccrualbasisreportsexpenseswhentheya

2、reincurredandmatchedwithrevenuestheygenerated.2.Theaccrualbasisofaccountinggenerallyprovidesabetterindicationofcompanyperformanceandfinancialconditionthandoesthecashbasis.Also,theaccrualbasisincreasesthecomparabilityoffinancialstatementsfromoneperiodtothenext.Thu

3、s,businessdecisionmakersgenerallyprefertheaccrualbasis.3.Businessesthathavemajorseasonalvariationsinsalesaremostlikelytoselectthenaturalbusinessyearasthefiscalyear.4.Aprepaidexpenseisanitempaidforinadvanceofreceivingitsbenefits.Assuch,itisreportedasanassetontheba

4、lancesheet.5.Long-termtangibleplantassetssuchasequipment,buildings,andmachineryleadtoadjustmentsfordepreciation.Generally,landistheonlylong-termtangibleplantassetthatdoesnotrequiredepreciation.6.TheAccumulatedDepreciationcontraaccountisusedfordepreciation.Itprovi

5、desfinancialstatementuserswithadditionalinformationabouttherelativeageoftheassets.Withoutthecontraaccountinformation,thereaderwouldnotbeabletotellwhethertheassetsareneworinneedofreplacement.7.Unearnedrevenuereferstocashreceivedinadvanceofprovidingproductsandservi

6、ces.Anothernameforunearnedrevenueisdeferredrevenue.Itisreportedasaliabilityonthebalancesheet.8.Accruedrevenueisrevenuethatisearnedbutisnotyetreceivedincash(and/orotherassets)andthecustomerhasnotbeenbilledpriortotheendoftheperiod.Therefore,end-of-periodadjustments

7、aremadetorecordaccruedrevenue.Examplesareinterestincomethathasbeenearnedbutnotcollectedandrevenuesfromservicesperformedthatareneithercollectednorbilled.9.AIfprepaidexpensesareinitiallyrecordedwithdebitstoexpenseaccounts,thentheprepaidexpensesassetaccountsaredebit

8、edintheadjustingentries.资料.10.ForBestBuy,alloftheaccountsunderthecategoryofPropertyandEquipment(exceptforLand),requireadjustingentries.Theexpenserelatedtothede