Question and answer
Discuss how the deferral of prepaid expenses, unearned revenues and depreciation support the matching principle.
Simply put; the deferral of prepaid expenses and unearned revenues ensures that expenses are properly matched with revenue, and revenues are properly matched with expenses. [ Where depreciation is concerned; the proper allocation of the cost of the asset over the period of time that the asset provides value for the company again ensures that expenses are properly matched with the revenue the
asset helps generate. Yes, the added work required by accrual accounting does add value to the financial statements. It ensures that statements for different periods are prepared using comparable methods, so changes in financial condition can be easily determined. In addition, it helps to ensure that other similar companies can also be compared to determine how one is doing in comparison to another. This is useful when comparing different companies prior to investing in one, or more, of them. ]
Get an answer
Original conversation
User: Discuss how the deferral of prepaid expenses, unearned revenues and depreciation support the matching principle.

Weegy: Simply put; the deferral of prepaid expenses and unearned revenues ensures that expenses are properly matched with revenue, and revenues are properly matched with expenses. [ Where depreciation is concerned; the proper allocation of the cost of the asset over the period of time that the asset provides value for the company again ensures that expenses are properly matched with the revenue the asset helps generate. Yes, the added work required by accrual accounting does add value to the financial statements. It ensures that statements for different periods are prepared using comparable methods, so changes in financial condition can be easily determined. In addition, it helps to ensure that other similar companies can also be compared to determine how one is doing in comparison to another. This is useful when comparing different companies prior to investing in one, or more, of them. ]
Expert answered|rhyann24|Points 820|

User: Does the added work required by accrual accounting add the perceived value to the financial statements

Weegy: It ensures that statements for different periods are prepared using comparable methods, so changes in financial condition can be easily determined. [ In addition, it helps to ensure that other similar companies can also be compared to determine how one is doing in comparison to another. This is useful when comparing different companies prior to investing in one, or more, of them. ]
Expert answered|rhyann24|Points 820|

Question
Asked 9/17/2011 10:05:14 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required?
Weegy: The remaining balance should be there. User: What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required? Weegy: Both the monetary and the statistical. (More)
Question
Expert Answered
Asked 9/14/2011 9:32:41 AM
0 Answers/Comments
What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required?
Weegy: payroll accounting has the responsibility of understanding and complying with all governmental payroll regulations and reporting requirements. [ These activities may be determined weekly, monthly, quarterly, and annually depending on the governmental agency and applicable regulation. What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required? Is the payroll function best performed within the company, or is outsourcing a better approach to payroll processing? What are the positives? ] User: Is the payroll function best performed within a company, or is outsourcing a better approach to payroll processing? (More)
Question
Expert Answered
Asked 9/14/2011 9:34:54 AM
0 Answers/Comments
Have you considered using the fill handle? Explain what a fill handle is and how you will go about using it.
Weegy: The Fill Handle has many uses. It can be used to copy data, copy formulas, add pre-set list of data to a spreadsheets, and add a series of numbers as well. (More)
Question
Expert Answered
Asked 9/14/2011 8:07:31 AM
0 Answers/Comments
What is a reference list for Business and Management?
Weegy: A reference list is placed at the end of your assignment, on a separate page(s). A reference list includes all the references that you have cited in the text of your assignment. (More)
Question
Expert Answered
Asked 9/12/2011 3:09:38 PM
0 Answers/Comments
What is a reference list for the title Business and Management?
Weegy: The title page would have your title and author(s) on it. Are you wanting suggestions on examples of a title? If so, is there a specific topic? Thanks! (More)
Question
Expert Answered
Asked 9/12/2011 3:07:18 PM
0 Answers/Comments
25,068,890 questions answered
Weegy Stuff
S
Points 211 [Total 211] Ratings 8 Comments 131 Invitations 0 Offline
S
Points 171 [Total 171] Ratings 2 Comments 131 Invitations 2 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 145 [Total 12397] Ratings 2 Comments 125 Invitations 0 Online
S
L
P
P
P
Points 45 [Total 3422] Ratings 0 Comments 45 Invitations 0 Offline
S
Points 38 [Total 107] Ratings 0 Comments 38 Invitations 0 Offline
S
Points 25 [Total 25] Ratings 0 Comments 25 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 1 [Total 48] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.