Question 7:An inexperienced accountant for Fowler Company prepared the following income statement forthe month of august 2018FOWLER COMPANYIncome StatementFor the Year Ended December 31, 2018RevenuesServices provided to customersinvestment by O.Fowler.ownerloan from bankTotal Revenues:$ 10,000.00$ 5,000.001,400.00$ 16,400.00Expensespayment to long term creditorsexpenses required to provide services to customerpurchase of landTotal Expenses:800075001600031,500.00$(15,100.00)Net LossRequired:Prepare a revise income statement in accordance with generally accepted accounting principles.

According to U.S GAAP, only revenue and expenses for the period, such as the revenue generated from…

Answered: Required: Prepare a revise income…

Business

Accounting

Required: Prepare a revise income statement in accordance with generally accepted accounting principles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following is a list of accounting assumptions and principles that have had an important impact on the development of generally accepted accounting principles and statements describing certain accounting practices. A. Reporting entity B. Going concern C. Period of time D. Historical cost E. Monetary unit F. Recognition G. Accrual accounting H. Revenue recognition I. Expense recognition J. Conservatism Required: Select the accounting assumption or principle that justifies each accounting practice and select the appropriate letter on each statement. 1. To provide timely information, companies prepare and report financial statements at the end of each year. 2. Appropriate recognition when a company consumes economic resources in conducting business operations. 3. Accounting measurements for U.S. companies are reported in dollars. 4. The financial statements represent the business, rather than its owners. 5. In the absence of evidence to the contrary, the business can be reasonably…
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