Statement 1: Cost of inventories or supplies are deducted from gross income when purchased or acquired to be used in the business or profession. Statement 2: Prepaid expenses are deducted from gross income as they expire or are actually used in the business or profession. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true

Statement 1: Cost of inventories or supplies are deducted from gross income when purchased or acquired to be used in the business or profession. Statement 2: Prepaid expenses are deducted from gross income as they expire or are actually used in the business or profession. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...

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