Journalizing amounts for unearned revenue can cause ethical dilemmas for many accountants since estimates are often used when exact completion amounts are uncertain.Discuss potential problems that this may cause for financial statement users.How does the concept of conservatism affect an accountant's recognition of revenue of a particular project? How would underestimating revenue of a project affect net income?

Question

Quizplus · Accepted Answer

The Answer of Journalizing amounts for unearned revenue can cause ethical dilemmas for many accountants since estimates are often used when exact completion amounts are uncertain.Discuss potential problems that this may cause for financial statement users.How does the concept of conservatism affect an accountant's recognition of revenue of a particular project? How would underestimating revenue of a project affect net income?

Journalizing Amounts for Unearned Revenue Can Cause Ethical Dilemmas for Many