Asked by Cedrick Ceballos on Jun 04, 2024
Verified
In practice,no end-of-period accrual is typically made for future returns and allowances.
End-Of-Period Accrual
Accounting adjustments made at the end of accounting periods to record revenues earned and expenses incurred but not yet recorded.
- Understand the influence of future refunds and allowances on financial statements.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
True
Explanation :
In practice, companies often do not make end-of-period accruals for future returns and allowances, as the timing and amount of such returns and allowances can be uncertain. Instead, they may estimate and account for these expenses as they occur.
Learning Objectives
- Understand the influence of future refunds and allowances on financial statements.
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