Question: 1. What work do tax accounting professionals perform in addition to preparing tax returns?
2. What does the concept of objectivity imply for information reported in financial statements? Why?
3. A business reports its own office stationery on the balance sheet at its $400 cost, although it cannot be sold for more than $10 as scrap paper. Which accounting principle and/or assumption justifies this treatment?
4. Why is the revenue recognition principle needed? What does it demand?