The allowance for doubtful accounts will not be precise by either the client or the auditor because of which of the following reasons?
a. It is an accounting estimate based upon judgment.
b. GAAP is not clear on the calculation of the allowance.
c. It is merely a reserve that is reversed by the client as income is needed for profitable results.
d. The precision is determined by the results of confirmation responses.
a
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There is universal agreement for determining precise standards for what constitutes deception and how best to regulate it.
Answer the following statement true (T) or false (F)
In the case of deferred revenue, the adjusting entry at the end of the period includes a debit to Service Revenue. Assume the deferred revenue is initially recorded as a liability
Indicate whether the statement is true or false
Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Emilio's yard next door. It landed on the lawn mower which exploded, setting fire to the wooden lawn furniture. Henry's best argument against liability would be:
A) that the leaf was not a substantial factor in causing the damage. B) res ipsa loquitur. C) that it was not foreseeable that the lawn mower would explode. D) that the damage was not caused by the leaf but by the gasoline.
If you purchase a stock, what are the two ways you can make money off this investment?
What will be an ideal response?