"Match the Concept – Accounting Principles in Action" by Johnson Mathelamuthu

johnsonmathelamuthu — 2025-07-31 03:56:44 UTC

Scenario: A software company signs a one-year contract with a customer in December 2023, but the customer will pay the full amount in March 2024. The company records the revenue in December 2023 when the service is provided.

johnsonmathelamuthu — 2025-07-31 03:57:04 UTC

Scenario: A manufacturing company facing temporary losses decides not to liquidate its assets because it believes it will recover and continue operations in the long term.

johnsonmathelamuthu — 2025-07-31 03:57:21 UTC

Scenario: A company anticipates a potential loss from a customer lawsuit and records it in its financial statements immediately, even though the lawsuit is still pending. However, it does not record a potential gain from another ongoing lawsuit until the case is settled.

johnsonmathelamuthu — 2025-07-31 03:57:38 UTC

Scenario: A retail business uses the FIFO (First-In, First-Out) method for inventory valuation every year to ensure that financial statements are comparable across periods.

johnsonmathelamuthu — 2025-07-31 03:58:02 UTC

Scenario: A corporation spends RM50 on office supplies but chooses not to track this expense separately in its financial reports, as it is too small to impact decision-making.

johnsonmathelamuthu — 2025-07-31 03:58:17 UTC

Scenario: A car dealership records the cost of advertising for a specific promotion in the same quarter as the sales revenue generated from that promotion.

johnsonmathelamuthu — 2025-07-31 03:58:30 UTC

Scenario: A real estate company hires an independent appraiser to determine the fair market value of a property it owns, rather than relying on internal estimates.

2025-07-31 07:43:25 UTC

accrual basis