Statement 1: In converting to accrual basis sales, write-off of Accounts receivable is deducted from sales under cash basis. Statement 2: Computation of capital under the singe entry system may involve determining the increase or decrease in total assets and liabilities for the period. a. Both statements are true c. Only statement 1 is true b. Both statements are false d. Only statement 2 is true
Statement 1: In converting to accrual basis sales, write-off of Accounts receivable is deducted from sales under cash basis. Statement 2: Computation of capital under the singe entry system may involve determining the increase or decrease in total assets and liabilities for the period. a. Both statements are true c. Only statement 1 is true b. Both statements are false d. Only statement 2 is true
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 34E
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Statement 1: In converting to accrual basis sales, write-off of
Statement 2: Computation of capital under the singe entry system may involve determining the increase or decrease in total assets and liabilities for the period.
a. Both statements are true c. Only statement 1 is true
b. Both statements are false d. Only statement 2 is true
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