Question

Does Diamond’s recording of the August 2010 ‘‘continuity’’ payments and August/September 2011 ‘‘momentum’’ payments as the purchases of fiscal 2010 and fiscal 2011, respectively, comply with the U.S. GAAP (Generally Accepted Accounting Principles)? Why or why not? Provide support from the accounting literature, including the FASB Concept Statements, in support of your argument

Answer 1

The correct response is "No".

Step-by-step explanation:

• The August year 2010 "continuity" transactions reported by Diamonds as well as the August/September year 2011 "momentum" transactions or transfers do not cooperate within U.S. GAAP.
• Diamond said that because it was truly compensating for products they had indeed purchased, the fees are there for potential products to be obtained.