How and why is the matching rule applied to the cost of a building?
The matching rule requires that the cost of a building be allocated over the period the building benefits the company (useful life of the building). This allocation of cost is in the form of depreciation expense that appears periodically (montly, quarterly, or annually) on the income statement. This conversion of asset cost into expense occurs over the same periods that the building aids the company in earning revenue. As a result of this matching of expense with revenue, the financial statements more accurately measure the entity's performance over the periods.
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Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,500 units. Itis estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in the currentyear and 70% in the next year. In the current year's income statement, Hall should show warranty expense of
a. $45,000 b. $13,500 c. $31,500 d. $0
The portion of acquisition cost expected to be recovered at the date of its disposal is known as
a. residual value. b. salvage value. c. trade-in value. d. all of these.
Miles and Snow’s (1978) typology argues that there are four types of organization: Defenders, Analysers, Reactors and ______.
a. Evaluators b. Prospectors c. Attackers d. Designers
The ____________________ rule states that the offeree must match, term by term, what was requested in the offer
Fill in the blank(s) with correct word