GENERALIZATION5. GEEXERCISESExplain briefly in 5 to 10 sentences only, Write your answers in your notebook.1. What is accrual basis of accounting? How is it applied in terms of revenuesand expenses?6.2. Differentiate accrual basis from cash basis accounting.3. What is the matching principle? Cite an example to expound on this aspect.4. Explain the periodicity concept. What are the most common forms of annualreporting periods?

Name: GENERALIZATION5. GEEXERCISESExplain briefly in 5 to 10 sentences only
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Description: GENERALIZATION5. GEEXERCISESExplain briefly in 5 to 10 sentences only, Write your answers in your notebook.1. What is accrual basis of accounting? How is it applied in terms of revenuesand expenses?6.2. Differentiate accrual basis from cash basis ac

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Business

Accounting

1. What is accrual basis of accounting? How is it applied in terms of revenues and expenses?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 4MAD: Analyze Target The following data (in millions) are taken from the financial statements of Target...

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Jarem Company showed 189,000 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance in the prepaid rent account was 226,800. Rent expense for 20X2 was 472,500. Required: 1. What amount of cash was paid for rent in 20X2? 2. CONCEPTUAL CONNECTION What adjustment in prepaid expenses is needed if the indirect method is used to prepare Jarems statement of cash flows?
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On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Analyze Target The following data (in millions) are taken from the financial statements of Target Corporation (TGT), the owner of Target stores: a. For Target, determine the amount of change in millions and the percent of change rounded to one decimal place from Year 1 to Year 2 for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and total operating expenses?
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Choose the correct answer Which of the following accounts is increased by a credit?A. CashB. Accounts receivableC. Accounts payableD. Owner’s drawings At the beginning of the period, the owner’s capital account of a business has a balance of ₱220,000. During the period, the total debits and credits to that account were ₱60,000 and ₱70,000, respectively. How much is the ending balance of the owner’s capital account? A. 230,000B. 210,000C. 350,000D. 90,000
Please answer what Financial Statement or Statements the following accounts go on. Additionally if they are permanent accounts. Income Statement (1) Balance Sheet (2) Retained Earnings Statement (3) Statement of Cash Flows (4) Type of Account: 1) Asset 2) Liability 3) Equity 4) Revenue 5) Expense Finally 1) Real 2) Nominal 1) Operating Income 2) Dividends PAYABLE 3) Accumulated Depreciation 4) Depreciation Expense 5) Dividends DECLARED 6) BEGINNING-of-period Retained Earnings balance 7) Service Fee Revenue 8) Tax Expense 9) Interest Receivable 10) Interest Income 11) Sales 12) Cost of Goods Sold 13) Prepaid Insurance 14) Supplies Expense
The revenue recognition principle requires a. time to be divided into annual periods to measure revenue properly. b. revenue to be recorded only after the business has earned it. c. expenses to be matched with revenue of the period. d. revenue to be recorded only after the cash is received.