Accrual basis of accounting: In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged. To describe: The difference between the accrual basis accounting and cash basis accounting.

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Answer 1

Question

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

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Dung Corporation uses the FIFO method in its process costing system. The following data concern the company's Assembly Department for the month of August. Cost in beginning work in process inventory $1,140 Units started and completed this month Cost per equivalent unit Equivalent units required to complete the units in beginning work in process inventory Equivalent units in ending work in process inventory 2,740 Materia Conver Is sion $ 18.55 $ 33.25 260 240 240 94 Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during August using the FIFO method.

Answer 2

Question

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

Answer 6

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

Answer 7

Chapter 4, Problem 4.7BYP

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To describe: The difference between the accrual basis accounting and cash basis accounting.

Answer 8

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

Answer 9

(b)

To determine

To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

Answer 10

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

Answer 11

(c)

To determine

To Explain: The government that it should practice the accrual basis of accounting.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 9Q Ch. 4 - Prob. 10Q

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To comment: The preference of cash basis of accounting over an accrual basis of accounting by the politician.

To Explain: The government that it should practice the accrual basis of accounting.

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