Hard Rock Hotel
Question 1
According to the book, page 104, the format used in showing the income statement and balance sheet is a "multiple step" format. The multiple step format is very common because it makes for clean balance and income sheets. With a multiple step format you break down each category into sub-divisions which then give you subtotals making it easier to calculate the final numbers.
Question 2
The note to describe an accounting rule applied in the company's statements is the note on "Depreciation and Amortization". This note states that land improvements, buildings and improvements, equipment, furniture and fixtures, and memorabilia are recorded at cost. Also, that depreciation and amortization are computed using the straight-line method over the estimated useful lives for financial reporting purposes and accelerated methods for income tax purposes. It then gives those estimated lives for each four things listed.
The note to which presents......
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Approximate Word Count: 407
Approximate Pages: 2 (260 words per double-spaced page) |