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
Actually a company can have some solid internal controls in place, more so they are required under the Sarbanes-Oxley Act, SOX Act. If you were in charge of the Sarbanes-Oxley Act,SOX Act what would you do about implementing controls?
Weegy: I'm not sure what you mean by implementing controls. The Sarbanes-Oxley Act of 2002 was passed in response to a number of major corporate and accounting scandals involving prominent companies in the United States. [ [ These scandals resulted in a decline of public trust in accounting and reporting practices. The Sarbanes-Oxley Act's major provisions include: - Certification of financial reports by chief executive officers and chief financial officers - Ban on personal loans to any Executive Officer and Director - Accelerated reporting of trades by insiders - Prohibition on insider trades during pension fund blackout periods - Public reporting of CEO and CFO compensation and profits - Additional disclosure - Auditor independence, including outright bans on certain types of work and pre-certification by the company's Audit Committee of all other non-audit work - Criminal and civil penalties for violations of securities law - Significantly longer jail sentences and larger fines for corporate executives who knowingly and willfully misstate financial statements. - Prohibition on audit firms providing extra "value-added" services to their clients including actuarial services, legal and extra services (such as consulting) unrelated to their audit work. - A requirement that publicly traded companies furnish independent annual audit reports on the existence and condition (i.e., reliability) of internal controls as they relate to financial reporting. ] ] User: What happens if you get a small green triangle within one of your cells? What causes this to appear? How do you make it disappear? (More)
Question
Expert Answered
Asked 9/12/2011 1:43:28 PM
0 Answers/Comments
What happens if you get a small green triangle within one of your cells? What causes this to appear? How do you make it disappear?
Weegy: If Excel locates what it believes might be an error in your worksheet, it will flag the cell wih a SMALL GREEN TRIANGLE in the upper left corner. To turn off this, 1. Select the Tools menu and choose Options. 2. [ In the Options dialog box that appears, select the Error Checking tab and uncheck the "Enable Background Error Checking" check box. 3. Click Ok to close the Options dialog box. All existing error indicators will disappear and Excel will stop checking for errors. ] (More)
Question
Expert Answered
Asked 9/12/2011 1:55:35 PM
0 Answers/Comments
What is APA formatting?
Weegy: Hi-APA firmatting or American Psychological Association ( APA) Style is a set of rules that authors use when submitting papers for publications in APA journals. (More)
Question
Expert Answered
Asked 9/12/2011 2:04:58 PM
0 Answers/Comments
What is APA formatting?
Weegy: APA format is the official style used by the American Psychological Association (APA) and is commonly used to cite sources in psychology, education and social sciences. [ APA format may seem difficult, but it will become easier once you familiarize yourself with the rules and format. ] (More)
Question
Expert Answered
Asked 9/12/2011 2:08:15 PM
0 Answers/Comments
ok
Weegy: Any other questions I can answer for you? User: What is APA formatting? Weegy: Hi-APA firmatting or American Psychological Association ( APA) Style is a set of rules that authors use when submitting papers for publications in APA journals. User: . List the characteristics of a paper that is properly formatted in APA style. Weegy: You have a cover page with all pertinent information, Your information is in the paper- not just page numbers,You use use footnotes and you have a bibliography, not work cited page. User: How do readers benefit from papers that follow a format like APA? Weegy: Yes they do as it is a standardized format which is generally known by the reader. APA style can help you in other ways, too. [ For example, following rules about spacing, margins, font type, and font size can help you ensure that your paper is the proper length. (If you wrote a single-spaced paper, even though APA uses double spacing, then you might write a paper twice as long as necessary.) Standard formatting also helps your professors grade papers more easily and quickly. And ultimately, if your professor requires APA style, then using APA in your research paper will help you get a good grade. Read more: Importance of Using APA Format in Research Papers | eHow.com you may try this link. Just keep on asking us here on weegy and well do our best to help you :) ] User: What is an "in-text citation"? Weegy: That is false. Paraphrases and data also require in-text citation. User: What is an in-text citation Weegy: In-text citations, called parenthetical citations, are used to document any external sources used within a document (unless the material cited is considered general knowledge). [ The parenthetical citations direct readers to the full bibliographic citations listed in the Works Cited, located at the end of the document. In most cases, the parenthetical citations include the author's last name and the specific page number for the ... (More)
Question
Expert Answered
Asked 9/12/2011 2:16:39 PM
0 Answers/Comments
17,913,170 questions answered
Popular Conversations
3x+3/18x= User: 10x+3/=
Weegy: this is quite simple, if you read over the question a few times and learn the tendencies. One number is ten ...
10/20/2014 5:27:08 PM| 5 Answers
Unfortunately, my mom told me it was time for my annual check ...
Weegy: Unfortunately, my mom told me it was time for my annual check up. Annual means yearly. User: Choose the ...
10/20/2014 4:18:03 PM| 4 Answers
Solve the inequality. 2(4 + x) > 4(x + 4) A. x > 4 B. x > ...
Weegy: 2w + 3 > 14; 2w > 14 - 3; 2w > 11; w > 11/2 User: Solve the inequality. 5a + 12 6 B. a < 6 C. D.
10/21/2014 12:59:56 PM| 3 Answers
what is micro
Weegy: A microorganism is a microscopic organism, which may be a single cell or multicellular organism. User: what ...
10/21/2014 7:38:45 PM| 3 Answers
Which value for x makes the sentence true? 8x = 3x 30
Weegy: 8x - 20 = 3x + 5; 8x - 3x = 5 + 20; 5x = 25; x = 25/5; x = 5 User: 7x - 5 = 3x + 11 Weegy: 8x + 3 = 7x - ...
10/20/2014 7:11:38 AM| 2 Answers
Which value for x makes the sentence true? 8x = 3x + 20
Weegy: 8x - 20 = 3x + 5; 8x - 3x = 5 + 20; 5x = 25; x = 25/5; x = 5 User: Which value of x makes the following ...
10/20/2014 7:16:30 AM| 2 Answers
Which value of x makes the following equation true? 3(x - 3) = -2x ...
Weegy: 6(x - 2) = -2x + 28 6x - 2 = -2x + 28 6x - 12 = 28 + 2x 8x - 12 = 28 8x = 28 + 12 8x = 40 x = 40/8 x = ...
10/20/2014 7:18:42 AM| 2 Answers
Weegy Stuff
S
L
1
1
1
1
L
1
L
Points 2267 [Total 14642]| Ratings 0| Comments 2267| Invitations 0|Offline
S
L
1
L
P
C
1
P
C
1
L
Points 1418 [Total 10899]| Ratings 3| Comments 1388| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 779 [Total 13008]| Ratings 0| Comments 779| Invitations 0|Offline
S
L
Points 487 [Total 1886]| Ratings 0| Comments 487| Invitations 0|Offline
S
1
L
L
Points 460 [Total 6254]| Ratings 3| Comments 430| Invitations 0|Offline
S
Points 458 [Total 458]| Ratings 0| Comments 428| Invitations 3|Offline
S
Points 339 [Total 340]| Ratings 3| Comments 309| Invitations 0|Offline
S
Points 207 [Total 207]| Ratings 1| Comments 197| Invitations 0|Offline
S
P
C
L
P
L
1
Points 48 [Total 6282]| Ratings 0| Comments 48| Invitations 0|Offline
S
Points 27 [Total 27]| Ratings 0| Comments 27| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.