None Cash and Sales would not be found on the same financial statement.True, because Cash is an asset and Sales is revenue and therefore reported on the Balance Sheetand Income Statement, respectively.False, because when added together the user can determine Owner's Equity.True, because there is no need to report the same thing twice.False, because Cash and Sales are both revenues and therefore both would be reported on theIncome Statement.

Balance sheet reports company's Assets, Liabilities, and Owner's equity. On the other hand, Income…

Answered: Cash and Sales would not be found on…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 6Q

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Which of the following statements is incorrect? A. The accrual method, which builds directly on the revenue and matching principles, ignores the timing of cash receipts or payments determining when to revenue or expenses. when recognize B. In accordance with the going concern assumption, the life of the business is presumed to be indefinite. C. Expenses are matched with revenues, not the reverse. D. In accordance with the unit of measure assumption, accountants normally revise the amounts to reflect the changing purchasing power of money due to inflation or deflation.
When cash is paid for expenses, the business has less cash; therefore, the asset account Cash is decreased and the owner's equity account is deacreased. Is it true or false? Explain your answer
Which sentence is incorrect? Select one: a. Cash-basis accounting is not in accordance with generally accepted accounting principles. b. In the Accrual-Basis Accounting, expenses are recognized when incurred. c. In the Cash-Basis Accounting, Revenues recognized when cash is received. d. According to the GAAP in Accrual-Basis Accounting, companies recognize revenues when they record cash receipts for their services.
I want correct and which is right and why with proper explanation else I will give dislikes. Question: Which of the following statements is true regarding the accrual basis of accounting? A) Revenues and expenses are recognized when cash is received or paid. B) Revenues and expenses are recognized when the transaction occurs, regardless of when cash is received or paid. C) Only revenues are recognized when cash is received, while expenses are recognized when cash is paid. D) Only expenses are recognized when cash is received, while revenues are recognized when cash is paid.
An adjusting entry would adjust revenue so it is reported when earned and not when cash is received. true false?
How many of the following statements regarding the Revenue Recognition and Matching Principles are true? According to the Revenue Recognition Principle, a company should not record the revenue from a transaction until it is actually received in cash. If payment is received at the time a service is provided there is no difference between how cash and accrual accounting record the transaction. The Matching Principle requires that expenses be matched to the period in which they help to produce revenue. Group of answer choices A. None B. One C. Two D. Three
Which statement is incorrect? Under cash basis of accounting, A. revenue is recorded when earnedB. expenses are recorded when paid.C. depreciation expense is recognized.D. bad debts expense is not recognized.E. none of the above
Which one of the following statements about revenue is not correct?A. Revenue can result in increases in accounts receivableB. Revenue can result in increases in liabilitiesC. Revenue is earned whenever cash is received from a customerD. Revenue is earned when a service is provided to a customer
Which statement about accrual basis of accounting is incorrect? * A. Accrual accounting adheres to the matching principle.B. Accrual accounting ignores the timing of cash flows in the business.C. Under accrual basis, a deferral is a transaction that impacts cash before impacting the income statement.D. none of the above
Which is NOT an example of a type of event that is not currently recognized in the financial statements but could impact future cash flows? A. litigations against the company B. services that were billed to a customer on account but payment has not been received C. a contract to deliver goods D. existing contract to preform services
Which of the following states that a transaction is not recorded in the books of accounts unless it is measurable in terms of money? a. Matching principle. b. Revenue recognition principle. c. Time period assumption. d. Monetary unit assumption.
Which of the following statements is false? Select one: a. Revenues are increased by debits b.Revenues increase owner’s equity. c. Revenues have normal credit balances. d. Revenues are a positive factor in the computation of net income.

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