Confirms the proceeds of sale so is more relevant to accuracy or valuation.D. Accuracy, valuation and allocation – means that amounts at which assets, liabilities and equity interests are valued, recorded and disclosed are all appropriate. The reference to allocation refers to matters such as the inclusion of appropriate overhead amounts into inventory valuation. Selecting Specific...
Bookkeeping
Only record a contingent liability if it is probable that the liability will occur, and if you can reasonably estimate its amount. Organizations incur the expense in a particular accounting period and own debt but have not yet been billed. We need to record this expense as an accrued liability in the books of accounts. Accrued liabilities are expenses incurred by an organization in the previous financial...