For each of the following, state whether you agree or disagree with the accounting treatment. What concepts support your view?
a)A company records all revenue when earned, whether it has been collected or not.
b)Payment of a three-year insurance policy is charged to insurance expense and not adjusted.
c)Because the December telephone bill did not arrive until January, no telephone expense was recorded for December.
d)Management of Classic Cars requires the accountants to prepare monthly financial statements.

Question

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The Answer of For each of the following, state whether you agree or disagree with the accounting treatment. What concepts support your view?
a)A company records all revenue when earned, whether it has been collected or not.
b)Payment of a three-year insurance policy is charged to insurance expense and not adjusted.
c)Because the December telephone bill did not arrive until January, no telephone expense was recorded for December.
d)Management of Classic Cars requires the accountants to prepare monthly financial statements.

For Each of the Following, State Whether You Agree or Disagree