1. Bad debts are recognized on both accrual and cash basis of accounting. True of False? 2. Adjusting entry is required to comply with the generally accepted accounting principles regarding revenue recognition and matching principle. True or false? 3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. O

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter3: Analyzing And Recording Transactions
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Problem 8TP: Analyze Trusty Companys trial balance and the additional information provided to determine the...
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1. Bad debts are recognized on both accrual and cash basis of accounting. True of False?

2. Adjusting entry is required to comply with the generally accepted accounting principles regarding revenue recognition and matching principle. True or false?

3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Insurance Expense and (CR) Cash.
            a. Transposition
            b. Transplacement
            c. No error
            d. Error of Omission
            e. Error of account titles

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