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
Is the payroll function best performed within a company, or is outsourcing a better approach to payroll processing?
Weegy: I think that such private process should be done within the company. I am not a supporter of outsourcing because it gives information about the company which can lead to more competition. [ The payroll process should be done by selective people who can be trusted to be honest and accurate, by doing it within the company. ] (More)
Question
Expert Answered
Asked 9/14/2011 10:18:23 AM
0 Answers/Comments
Is the payroll function best performed within a company, or is outsourcing a better approach to payroll processing User: What are the positives and negatives of both? User: What are the positives and negatives of both? 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: Multi -location processing . The supplier can usually process payroll for all company locations; several suppliers are based in all major cities, so they can handle paycheck deliveries to nearly any location. [ Other smaller suppliers get around not having multiple locations by sending checks via overnight delivery services either approach works very well. ] (More)
Question
Expert Answered
Asked 9/14/2011 9:50:43 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
23,877,302 questions answered
Popular Conversations
Small family owned businesses usually require applicants to submit ...
Weegy: TRUE. Small family owned businesses usually require applicants to submit electronic resumes.
2/8/2016 8:47:01 AM| 3 Answers
Which action associated with the United States' "return to normalcy" ...
Weegy: Washington Disarmament Conference was on 1921 and established a treaty between the United States, France, ...
2/8/2016 9:35:32 AM| 2 Answers
The King James Bible was written by A. King James. B. a ...
Weegy: The King James Bible was written by A. King James.
2/8/2016 12:55:50 PM| 2 Answers
Weegy Stuff
S
Points 287 [Total 684] Ratings 0 Comments 287 Invitations 0 Offline
S
P
P
Points 178 [Total 985] Ratings 0 Comments 178 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
Points 117 [Total 11290] Ratings 0 Comments 117 Invitations 0 Offline
S
L
P
Points 46 [Total 2114] Ratings 0 Comments 46 Invitations 0 Offline
S
R
Points 9 [Total 445] Ratings 0 Comments 9 Invitations 0 Offline
S
Points 7 [Total 291] Ratings 0 Comments 7 Invitations 0 Offline
S
Points 4 [Total 904] Ratings 0 Comments 4 Invitations 0 Offline
S
Points 4 [Total 4] Ratings 0 Comments 4 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 1 [Total 2] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)