1. The revenue recognition concept a. Determines when revenue is credited to a revenue account. b. States that revenue is not recorded until the cash is received. c. Controls all revenue reporting for the cash basis of accounting. d. Is in conflict with accrual accounting. 2. The matching principle: a. Addresses the relationship between the journaland the ledger. b. Determines whetherthe normal balance of an account is a debit or credit. c. Requires that expenses related to revenue and revenue be reported at the same time. d. Requires that the dollar amount of debits equalthe dollar amount of credits in a journal entry. 3. Using accrual accounting, expenses are recorded only: a. When they are incurred and paid at the same time b. If they are paid before they are incurred c. If they are paid afterthey are incurred d. When they are incurred, whether or not cash is paid

1. The revenue recognition concept a. Determines when revenue is credited to a revenue account. b. States that revenue is not recorded until the cash is received. c. Controls all revenue reporting for the cash basis of accounting. d. Is in conflict with accrual accounting. 2. The matching principle: a. Addresses the relationship between the journaland the ledger. b. Determines whetherthe normal balance of an account is a debit or credit. c. Requires that expenses related to revenue and revenue be reported at the same time. d. Requires that the dollar amount of debits equalthe dollar amount of credits in a journal entry. 3. Using accrual accounting, expenses are recorded only: a. When they are incurred and paid at the same time b. If they are paid before they are incurred c. If they are paid afterthey are incurred d. When they are incurred, whether or not cash is paid

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 1MCQ: Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a...

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