Accounting Homework Help!?

Posted on 2014-04-11 11:54:00 in Accounting by JOE

Just some general accounting homework help. All answers welcome! Thanks!



-According to US generally accepted accounting principles [GAAP], what is the correct way to account for “bad debt expense” when dealing with uncollectible receivables? How does the IRS require taxpayers to account for bad debt expense? If this approach differs from GAAP, why does the IRS support it?



-Is a liability created when a merchant collects sales tax from a client? If so, how would it be reported on the merchant’s accounting records? In this situation, what is the relationship between the merchant and the government?



-Explain the difference between “expenditures” and “expenses.” What major accounting principle creates the distinction? Give real-life examples of expenses which are recorded before, during the same period, and after their related expenditures.



-What is meant by a “contingency,” and how do we account for it? Does the accounting for a gain contingency differ from a loss contingency, and if so, why? Which principle supports this method of accounting?



-Why do some liabilities “accrue?” Name at least three examples of accrued liabilities.



Thanks again! :)

---

Answer Comment

No Answers Posted Yet.