Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 60

Adequate Disclosure
Listed below are five items that may-or may not-require disclosure in the notes that accompany financial statements.
a.andella Construction Co.ses the percentage-of-completion method to recognize revenue onlong-term construction contracts.his is one of two acceptable methods of accounting for such projects.ver the life of the project, both methods produce the same overall results, but the annual results may differ substantially.
b.ne of the most popular artists at Spectacular Comics is leaving the company and going to work for a competitor.
c.hortly after the balance sheet date, but before the financial statements are issued, one of Coast Foods's two processing plants was damaged by a tornado.he plant will be out of service for at least three months.
d.he management of Soft Systems believes that the company has developed systems software that will make Windows" virtually obsolete.f they are correct, the company's profits could increase by 10-fold or more.
e.ollege Property Management (CPM) withheld a $500 security deposit from students who, in violation of their lease, kept a dog in their apartment.e students have sued CPM for this amount in small claims court.
Instructions
For each case, explain what, if any, disclosure is required under generally accepted accounting principles.xplain your reasoning.