Text Ch.2 #2 Which of the following statements describe tranasactions that would be recorded in an accounting system? 1) An exchange of an asset for a promise to pay 2) An exchange of a promiste for another promiswe 3) Both of the above 4) None of the above?

Text Ch.2 #2 Which of the following statements describe tranasactions that would be recorded in an accounting system? 1) An exchange of an asset for a promise to pay 2) An exchange of a promiste for another promiswe 3) Both of the above 4) None of the above?

Name: Text Ch.2 #2Which of the following statements describe tranasactions t
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Text Ch.2 #2Which of the following statements describe tranasactions that would be recorded in an accounting system?1) An exchange of an asset for a promise to pay2) An exchange of a promiste for another promiswe3) Both of the above4) None of the abo

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 25MC: What is the impact on the accounting equation when a payment of account payable is made? A. both...

See similar textbooks

Similar questions

Case Questions1. Consider the principles, assumptions, and constraints of Generally AcceptedAccounting Principles (GAAP). Define the revenue recognition principle andexplain why it is important to users of financial statements.2. Consider the Sithe Energies contract described in the case. Does the account-ing for this contract provide an example of how Enron violated the revenuerecognition principle? Why or why not? Please be specific.3. Consult Paragraphs .06–.07 of AU Section 319. Based on the case informa-tion, do you believe that Enron had established an effective system of inter-nal control over financial reporting related to the contract revenue recordedin its financial statements? Why or why not? 4. As an auditor, what type of evidence would you want to examine to deter-mine whether Enron was inappropriately recording revenue from the SitheEnergies contract?5. Consider the role of the Enron employee who was responsible for applyingMTM accounting rules to electric power…
Q17 Which of the following journal entries correctly reflect settlement date accounting? Select one: a. DR Liability for acquisition of financial assetCR Bank b. DR Financial asset (to be delivered)CR Liability for acquisition of financial asset c. DR Debtor (to deliver the financial asset)CR Liability for acquisition of financial asset d. DR Financial asset (delivered)CR Bank
Q2. Would AT&T (T) and Microsoft (MSFT) use the cash basis or the accrual basis of accounting? Explain.
1. Multiple-Choice Question Under the accrual basis of accounting, revenues are reported in the accounting period when which of the following occurs? A. Cash Is Received B. Services Or Goods Have Been Delivered Please explain, and add example if can.
1.Read the statements below and answer the question - The earnings process should be completed entitling the bank to the right to receive - Obligations arises on the part of the customer to remit fixed or determinable obligations - Amount received is known and if not collected is collectable with reasonable certainty What do the above statement reflect? (A) Revenue recognition principles (B) Expenses recognition principles (C) Provision recognition (D) Debt recognition principles 2.An asset is anything that is capable of generating positive cash flows or other economic benefits in the future either by itself or in combination with other assets which the financial institution has acquired the right to as a result of past transactions or events. Although the capacity of the financial institution to control benefits is usually the result of legal rights, an item may nonetheless satisfy the definition of an asset even there is no legal control. Based on the above statement which of…
1. In no more than 3 sentences, explain the given set of rules when an entity must offset a financial assest with financial liability. 2. In no more than 3sentences, explain the component of a compound financial instrument.
1. Which of the following statements are correct? (1) Materiality means that only items having a physical existence may be recognised as assets. (2) The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. (3) The money measurement concept is that only items capable of being measured in monetary terms can be recognized in financial statements. A 2 only B 1, 2 and 3 C 1 only D 3 onlyExplain Why
Choose only one answer. The term refers to the classification and aggregation on the face of the financial statements such as current or noncurrent assets, current or noncurrent liabilities, equity items, revenues, cost of sales, cost of service, administrative expenses or operating expenses, as the case may be : Related Accounts Related Parties Related Assets Related Statements The assets are held in trust for the equal benefit of all creditors to preclude one from obtaining an advantage or preference over another by the expediency of attachment, execution of otherwise. *Doctrine of Pari Passu of Equality in EquityCrab Mentality EffectCram Down EffectClawback Effect Rehabilitation is not necessarily court supervised. It may be informal or extrajudicial restructuring agreement or rehabilitation plan provided that it meets the minimum requirements recognized under the FRIA. The ultimate objective is to come up with rehabilitation or restructuring…
4 What is the impact on the accounting equation when a sale occurs?A. both sides increaseB. both sides decreaseC. only the Asset side changesD. neither side changes
What is the impact on the accounting equation when a payment of account payable is made? * both sides increase both sides decrease only the Asset side changes neither side changes
1.This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to. A. Income Statement B. Balance Sheet
S1: Reinsurance contracts issued that are assets shall be presented in the financial position separately. S2: Insurance contracts issued that are assets shall be presented in the financial position separately. Only S2 is correct. Both statements are correct Only S1 is correct. Both statements are incorrect.