Walker parking which operates a six-story parking building


Question: Walker Parking, which operates a six-story parking building, has a calendar year-end. It serves daily and hourly parkers, as well as monthly parkers who pay a fixed monthly rate in advance. The company traditionally has recorded all cash receipts as revenues when received. Most monthly parkers pay in full during the month prior to that in which they have the right to park. The company's auditors have said that beginning in 2015, the company should consider Unearned Revenues. Total cash receipts for 2014 were $1,350,000, and the cash receipts received in 2014 nd applicable to January, 2015,were $70,000. Discuss the relevance of the accounting conventions of consistency, full disclosure, and materiality to the decision to record the monthly parking revenues on an accural basis.

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Accounting Basics: Walker parking which operates a six-story parking building
Reference No:- TGS02558992

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