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In the Chart Below, Identify the Expense Recognition Method That

Question 50

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In the chart below, identify the expense recognition method that you feel is most appropriate and also explain why.
 Transaction  Expense recognition  method  Why?  A. A company purchases computers for its  marketing department.  B. A company purchases manufacturing  equipment that is expected to produce 25,000 units.  C. A company incurs delivery costs on January 2  for a shipment of products sold seven days  earlier (before the year-end). \begin{array} { | l | l | l | } \hline \text { Transaction } & \begin{array} { c } \text { Expense recognition } \\\text { method }\end{array} & \text { Why? } \\\hline \text { A. A company purchases computers for its } & & \\\text { marketing department. } & & \\\hline \text { B. A company purchases manufacturing } & & \\\text { equipment that is expected to produce } 25,000 & & \\\text { units. } & & \\\hline \text { C. A company incurs delivery costs on January 2 } & & \\\text { for a shipment of products sold seven days } & & \\ \text { earlier (before the year-end). }\\\hline\end{array}

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