Preparation of adjusting entry for depreciation is supported by which principle/concept/assumption? O Separate business entity assumption O Stable monetary unit assumption O Matching principle O Revenue recognition principle

Preparation of adjusting entry for depreciation is supported by which principle/concept/assumption? O Separate business entity assumption O Stable monetary unit assumption O Matching principle O Revenue recognition principle

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 1MC: Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process...

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Question

Preparation of adjusting entry for depreciation is supported by which principle/concept/assumption?
O Separate business entity assumption
O Stable monetary unit assumption
O Matching principle
O Revenue recognition principle

If an adjusting entry is not made for an accrued revenue
O assets will be overstated.
O owner's equity will be understated.
O revenues will be overstated
O expenses will be understated.

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