Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement.

 Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement.

1. SiriusXM Radio Inc. files its annual and quarterly financial statements with the SEC.
2. The president of Applebee’s International, Inc., travels on the corporate jet for business purposes only and does not use the jet for personal use.
3. Jackson Manufacturing does not recognize revenue for unshipped merchandise even though the merchandise has been manufactured according to customer specifications.
4. Lady Jane Cosmetics depreciates the cost of equipment over their useful lives.

 Answer 

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows:

 Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000.

In addition, you determine that customers owed the company $60,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period.
 
Calculate accrual net income for the year.

 

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Listed below are several terms and phrases associated with the FASB’s conceptual framework. Pair each item from List A with the item from List B that is most appropriately associated with it.

 Listed below are several terms and phrases associated with the FASB’s conceptual framework. Pair each item from List A with the item from List B that is most appropriately associated with it.

 Answer