Topic: Discussion questions
Topic: Discussion questions
1) Tricia Fenton, vice president of operations for Billings National Bank, has instructed the bank’s computer programmer to use a 365-day year to compute interest on depository accounts (payables). Tricia also instructed the programmer to use a 360-day year to computer interest on loans (receivables). Discuss whether Tricia is behaving in a professional manner and why or why not.
2) Is it necessary for a business to use the same method of computing depreciation (a) for all classes of its depreciable assets and (b) for financial statement purposes and in determining income taxes? Explain.
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