Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method. To determine the reason for changes in the accounting method.

Question

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Answer 1

Question

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.

Conclusion

Thus, the reasons for the changes in accounting method are mentioned above.

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Your company purchases $4,500 of supplies, recording them as assets. At year end, a physical count sAhows $1,400 of supplies on hand. The year-end adjusting entry debits supplies expense and credits supplies on hand for $1,400. The correcting entry will _.

Your company purchases $4,500 of supplies, recording them as assets. At year end, a physical count sAhows $1,400 of supplies on hand. The year-end adjusting entry debits supplies expense and credits supplies on hand for $1,400. The correcting entry will _. Provide Answer

Answer 2

Question

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.

Conclusion

Thus, the reasons for the changes in accounting method are mentioned above.

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Answer 3

Question

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.

Conclusion

Thus, the reasons for the changes in accounting method are mentioned above.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.

Conclusion

Thus, the reasons for the changes in accounting method are mentioned above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.

Conclusion

Thus, the reasons for the changes in accounting method are mentioned above.

Answer 6

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.

Conclusion

Thus, the reasons for the changes in accounting method are mentioned above.

Answer 7

Chapter 22, Problem 1Q

To determine

Accounting method: A set of rules and guidelines through which the organization records and analyzes the financial transactions is termed accounting method.

To determine the reason for changes in the accounting method.

Answer 8

Expert Solution & Answer

Explanation of Solution

Solution: Justification:

The change in method of accounting may show profit in the books of account. This may create goodwill among the investors.
The change in method of accounting may decrease the taxes payable for the accounting period and the flow of cash may increase.
The change in method might be insisted by the Financial Standard Board.
Companies in the same industry might follow a different method of accounting; to match that the company might change the accounting method.
The change in accounting method may help the company to provide a better picture about the company revenue or income.