Economics

As you move forward, Introduction to Financial Accounting is a good resource as well as your Key Accounting Principles and Terms document.  

Here is some more specific feedback to reach mastery:

· Water – this should be included as it is an expense as they are an allowable expense of the Practice; what Principle corresponds to expenses?

· License - this should be included as it is an expense as they are an allowable expense of the Practice; what Principle corresponds to expenses? 

· Misc Expenses/ couch- should include but what principle supports expenses?

· Text Books - you have the correct principle but why should they be included?

· Sublease Income – should be included (as income) as what principle relates to revenue?

· Saturday Clinic – there are two transactions generated from this activity, revenue and expenses.  What two principles support this activity?

· Bad Debt – should be included as an expense as they are an allowable expense of the Practice; what Principle corresponds to expenses?

· Interest Income – this is revenue to the Practice so it should be included; what principle relates to revenue?

· Landscape bills- should be included, but what principle for this expense?

· Art Appraisal – correct principle but why should this be included?

· Gifts  – this should be included as they are an allowable expense of the Practice; what Principle corresponds to expenses?

· Travel- there are two parts, including one that should be excluded.  What is the other principle that allows recognizing expenses?

· Old bills- should be excluded, but what principle relates to expenses?

· Postage meter sale-  it is revenue and should be included; what principle supports this?

· Volunteering - should be excluded as was there an actual transaction?

· Computer - should be excluded was there an actual transaction?

· IRS - should be excluded was there an actual transaction?

· Malpractice- should be included as it is an allowable expense of the Practice; what Principle relates to expenses?

· CPA Appraisal – should be excluded, but what principle? (See Art)

· Unemployment – should be included, as it is an expense, but not the Time Period principle.

· Royalties – should be excluded was there an actual transaction?

·  Estimate of software- they should be excluded.  Was there a transaction?

While the list might look long, you are off to a solid start and are on track.  Keep up the good work!  Looking forward to your next submission.