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When is an accounting issues memo necessary?

a. Simple transactions
b. Judgmental transactions
c. Highly material transactions
d. All answers are correct

User Lakshman
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1 Answer

3 votes

Final answer:

An accounting issues memo is necessary for judgmental transactions and highly material transactions.

Step-by-step explanation:

An accounting issues memo is necessary for judgmental transactions and highly material transactions. In these cases, the memo helps to document the rationale behind the accounting treatment chosen and provides a record for future reference. Simple transactions, on the other hand, may not require an accounting issues memo as the treatment is straightforward and does not involve significant judgment or materiality.

User Rahul Mankar
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