Accountant Homework Assignment

1. Identify the appropriate qualitative characteristic(s) to be used given the information provided below.

(a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. Comparability

(b) Imperative for providing comparisons of a company from period to period. Consistency

(c) An item is not recorded because its effect on income would not change a decision. Materiality

(d) Two primary qualities that make accounting information useful for decision-making purposes. Relevance and Faithful Representation

(e) Issuance of interim reports is an example of what primary ingredient of relevance? Timelines

2. Identify which basic assumption of accounting is best described in each item below:

(a) The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports. Periodicity

(b) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes. Economic entity

(c) Norfolk Southern Corporation reports revenue in its income statement when it is earned instead of when the cash is collected. Revenue recognition

(d) Yahoo, Inc. recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue. Matching

(e) Oracle Corporation reports information about pending lawsuits in the notes to its financial statements. Full Disclosure

(f) Eastman Kodak Company reports land on its balance sheet at the amount paid to acquire it, even though the estimated fair value is greater. Historical cost

3. What are the four types of adjusting entries? Please give a definition and one example of each.

The four types of adjusting entries are: accrued revenues, unearned revenues, accrued express, and prepaid expenses. Accrued revenues are revenues that are already earned, but haven’t been paid by the consumer. Unearned revenues are revenues received in cash and...