Cory Harper, a newly hired accountant, wanted to impress his boss, so he stayed late one night to analyze the office supplies expense account. He determined the cost by month, for the past 12 months, of each of the following: computer paper, copy paper,
fax paper, pencils and pens, note pads, postage, corrections supplies, stationery, and miscellaneous items. Why do companies not include information of this nature in published financial statements?
Companies provide information to users to make decisions. The primary decision makers external to the business are creditors, bankers, stockholders, and potential stockholders. These users need to know that the company can repay its debts, earn a profit, and pay dividends. The cost by month for each item of office supplies does not provide any additional information that would be helpful for any external users. In addition, the time and expense necessary to create the additional detail would outweigh the benefits of the final product. The amounts involved are probably immaterial.
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When direct and indirect materials are issued into production from storage, an entry is made
a. debiting Work in Process, debiting Factory Overhead, and crediting Materials. b. debiting Work in Process and crediting Materials. c. debiting Materials, crediting Work in Process, and crediting Factory Overhead. d. debiting Factory Overhead, crediting Work in Process, and crediting Materials.
Which one of the following adjustments will increase assets?
a. Interest incurred on money borrowed during the period but not yet paid to the bank is accrued. b. Rent revenue is recorded for amounts owed by a tenant but not yet paid. c. The use of supplies is recorded. d. Depreciation for the period is recorded.
Supply chain management involves managing both upstream and downstream value-added flows of materials
Indicate whether the statement is true or false
The "S" in the S.M.A.R.T. goals acronym stands for
A. specific. B. systematic. C. serious. D. scientific. E. self-set.