UNDER THE ACCRUAL BASIS OF ACCOUNTING, IF CASH IS RECEIVED PRIOR TO THE SALE, THEN: A. REVENUE IS RECOGNIZED WHEN THE CASH IS RECEIVED. B. A LIABILITY IS RECOGNIZED WHEN CASH IS RECEIVED. C. A LIABILITY IS REMOVED FROM THE SYSTEM WHEN THE CASH IS RECEIVED. D. REVENUE IS REMOVED FROM THE SYSTEM WHEN THE SERVICES HAVE BEEN PERFORMED OR THE GOODS HAVE BEEN DELIVERED

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

Q: Best Buy Co. follows the accrual basis of accounting. Which of the following statements is false?…

A: Under Accrual System of accounting Revenues are recognised as and when they are earned irrespective…

Q: Under the general rule of revenue recognition, revenue is recognized when Group of answer choices…

A: The revenue recognition principle says that we need to recognize the revenue at the time when goods…

Q: What type of accounting recognizes revenues and expenses in the same accounting period that cash…

A: . Accrual basis: It is one of the methods of basis of accounting that records the transactions…

Q: The receipt or payment of cash is not considered as the basis for recording transaction in the case…

A: The businesses record all of their financial transactions initially in the journal.

Q: 2. Unearned or deferred revenue can occur when a. services provided prior to receipt of cash b.…

A: Answer: concept : Deferred revenue or unearned revenue refers to the money received by an…

Q: Under accrual accounting, when should a company that sells merchandise to customers recognize…

A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…

Q: Which of the following is true of unearned revenue? It is a liability account that is increased when…

A: Unearned revenue is simply cash received in advance.   Advance cash is received when services have…

Q: Which statement about accrual basis of accounting is incorrect? * A. Accrual accounting adheres to…

A: In accrual-based accounting, accounts on a balance sheet reflect liabilities and non-cash-based…

Q: TRUE or FALSE Revenue should be recorded in the period it is earned, regardless of the time the cash…

A: It is true or false questions.

Q: What is false about the matching principle? a. Incurred expenses should be matched with earned…

A: Matching principles are those principles which emphasize on matching of revenues of the business…

Q: Which statement is incorrect? Under cash basis of accounting,

A: Cash basis of accounting:   It is a method of accounting adopted by companies where the transactions…

Q: When, at the end of an accounting period, cash has not been paid with respect to an expense that has…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities…

A: There are two type of bases used in accounting purpose. One is cash basis of accounting and other is…

Q: A change from cash basis to accrual basis should be reported A. Retroactively as a correction of…

A: Cash basis refers to the accounting of the transactions as and when the cash is received. Whereas…

Q: Instructions: Classify each transaction whether they are operating, financing or investing. After…

A: Transactions will be classified under 3 major heads, Operating activity, Investing activity and…

Q: Which of the following statements about income and expense recognition is true? I. The gross profit…

A: Recording of Income statement and Balance Sheet can be done through different methods : Cash basis:…

Q: t is the amount earned by the business on the process of selling goods or performing services. a.…

A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…

Q: When recognizing revenue, a company has a performance obligation when it agrees to a. perform a…

A: A performance obligation is satisfied when the company delivered goods or performed services to…

Q: Revenue is recognized for accounting purposes when a performance obligation is satisfied. In some…

A: Revenues are the amounts received by a seller on selling goods to the buyer or performing the…

Q: difference between the cash basis and accrual basis of accounting

A: In cash basis of accounting, receipts and payments are treated as income and expenses respectively.…

Q: Revenue is earned when ​ ________.   A. the business has received cash from the customer   B. the…

A: The revenue recognition concept says that the business should recognize the revenue when the…

Q: When a payment is made to a supplier for goods previously purchased on account, the debit is to an…

A: Solution:- Discussion of clarification regarding payment is made to a supplier for goods previously…

Q: In simpler terms, revenue is the inflow of cash or accounts receivable that a business receives when…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: ollowing is an accounting concept which serves as the basis for revenue and expense recognition :…

A:

Q: According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the…

A: Revenue: It refers to money earned by the business from selling its goods and services to the…

Q: When, at the end of an accounting period, cash has not been paid with respect to an expense that has…

A: Financial statements are prepared at the year end so that position and performance of the company…

Q: Under accrual accounting, when are revenue and expenses recognized? Revenue is recognized when cash…

A: Under the accrual basis of accounting, revenue is considered to have been earned when goods are sold…

Q: Which of the following is correct? Events that change a company's financial statements are…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: hich of the following transactions is recorded in the revenue journal? a. sale of excess office…

A: Revenue Journal- Revenue journal is also known as a sales journal. All the credit sales of goods…

Q: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: Based on the accrual accounting rule, the revenue is recognized when ___________ and the expense is…

A: Accrual based accounting method record revenue and Expense when the transaction is incurred rather…

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

A: GAAP is the generally accepted accounting principles that are used by the accountants for the…

Q: COVID Company recognizes revenue in the period in which the account receivable is collected in cash,…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: t is an amount owed to suppliers for goods purchased or services performed on credit. a. Outstanding…

A: Account payables means the amount owed by business to outsider for the goods received and services…

Q: Which of the following is true of accrual basis accounting and cash basis accounting? Accrual…

A: Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are…

Q: 6. On an accrual basis under generally accepted accounting principles, revenue is recognized using…

A: Accrual concept in accounting says that all revenues that are earned in a particular accounting…

Q: Which sentence is incorrect? Select one: a. Cash-basis accounting is not in accordance with…

A: Accounting principles are rules and regulations that are followed in the preparation of fair and…

Q: Which sentence is incorrect? Select one: a. According to the GAAP in Accrual-Basis Accounting,…

A: As per cash basis of accounting, we should record the transaction only when corresponding cash is…

Q: Which of the Tollowing is an asset exchange transaction? O a. Issued common stock. b. Accrued salary…

A: When just asset accounts are involved in a transaction, it is called an asset exchange transaction.

Q: Under accrual-basis accounting, revenues are always recognized when Cash is received Earned The…

A: Lets understand the basics. There are two type of accounting systems are followed which are, (1)…

Q: 2. Unearned or deferred revenue can occur when a. services are provided prior to receipt of cash…

A: Under the new IFRS 15, the main focus changes from the income statement to the balance sheet, the…

Q: FASB suggest that revenues are considered to be earned: a. at the point of sale b. throughout the…

A: According to the FASB revenue is recognized on the accrual basis of accounting which shows that the…