Ethic in accounting Literature & Language Essay Paper

Accounting Ethics Analysis
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Question 1
During the use of the allowance for doubtful account methods, it is important to determine the documented uncollectible accounts expense. This is essential in ensuring that historical data informs the estimates being used. Nevertheless, industry averages can also be used to establish the basis for the business if there is a lack of uncollectible accounts records. This can be demonstrated by the following example. If the firm averages about five percent of uncollectible accounts for a previous two financial years, it appropriate if this percentage is recorded as uncollectible over the course of the current financial year.
Question 2
Since balance sheet and income statement differ. Therefore, if one of these is eliminated, they are all wrong. In the income statement, we usually see whether there was any form of profit that was made as a result of the business during a particular financial year. On the other hand, the balance sheet gives a picture of financial performance of the business during the financial year under consideration. The...