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This 1 page Class Notes was uploaded by Daphney Rath on Wednesday October 28, 2015. The Class Notes belongs to ACC2310 at Villanova University taught by RobertDerstine in Fall. Since its upload, it has received 19 views. For similar materials see /class/230564/acc2310-villanova-university in Accounting at Villanova University.
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Date Created: 10/28/15
Exce I ts from Accountin Research Bulletin 43 Ca I te 2A r 1 Th in annual and other reports enhances the usefulness of such reports and brings out more clearly the nature and trends of current changes affecting the enterprise Such presentation emphasizes the fact that statements for a series of periods are far more signi cant than those for a single period and that the accounts for one period are but an installment of what is essentially a continuous history m If because ofreclassif1cations or for other reasons changes have occurred in the manner of or basis for presenting corresponding items for two or more periods information should be furnished which will explain the change This procedure is in conformity with the well recognized principle that any change in practice which affects comparability should be disclosed 3 It is necessary that prioryear figures shown for comparative purposes be in fact comparable with those shown for the most recent period or that any exceptions to comparability be clearly brought out Excepts from A 39 Bulletin 43 Chapter 3A The term LMWMTLJL H Lawfulwea is used principally to designate obligations whose liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets or the creation of other current liabilities As a balancesheet category the classification is intended to include obligations for items which have entered into the operating cycle such as payables incurred in the acquisition of materials and supplies to be used in the production of goods or in providing services to be offered for sale collections received in advance of the delivery of goods or performance of services and debts which arise from operations directly related to the operating cycle such as accruals for wages salaries commissions rentals royalties and income and other taxes Other liabilities whose regular and ordinary liquidation is expected to occur within a relatively short period of time usually twelve months are also intended for inclusion such as shortterm debts arising from the acquisition of capital assets serial maturities of long term obligations amounts required to be expended within one year under sinking fund provisions and agency obligations arising from the collection or acceptance of cash or other assets for the account of third persons