
Concept explainers
1)
Journal entries record the effect of the financial transactions on impacted accounts and assist in the preparation of financial statements. Accounts are debited to increase balances of assets and expenses, on the other hand, they are credited to increase the balance of incomes and liabilities.
2) Principle of Revenue Recognition assists in determination of the correct revenue to be recognized and reported for a particular period. This ensures that the quality and accuracy of Financial Statements is maintained.
Ethics refer to the moral guidelines and code of conduct and behavior to be observed and followed in situations that create a moral dilemma.
Ethical obligations of recording the transaction in December instead of January.

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Chapter 4 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
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