When a business provides services for cash, which elements of the accounting equation are affected? Multiple Choice Revenue and Expense Cash and Revenue Cash and Expense Cash and Dividends

Q: Is the Profit that a business makes a reliable indicator of its cash balances? What are the…

A: No, The profit that a business makes is not a reliable indicator of its cash balance. This is…

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: Preparing the statement of cash flows. For each transaction, identify the appropriate section on the…

A: Indicate the appropriate section of the cash flow statement:

Q: Which one of the following is a source of cash? O purchase of inventory O granting credit to a…

A: The amount received or Inflow of cash in an Organisation from any kind of activity that is Either…

Q: Which of the following is correct regarding the statement of cash flows? a. It reports the financial…

A: Income Statement: Financial Performance Statement of Shareholders' Equity: Changes in Equity Balance…

Q: It is said that the cash items of the business are presented in all four financial statements:…

A: Cash items are presented only in Cash Flow Statement. As Cash Flow Statement is a Statement of Cash…

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: Distinguish between cash-basis accounting and accrualbasisaccounting. Why is accrual-basis…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is the main purpose of the cash flow statement in business?

A: Cashflow statement contains the following activities: Operating 2. Investing and Financing In…

Q: Addison Company experienced an accounting event that affected its financial statements as indicated…

A: Collected cash from customers in partial settlement of its accounts receivable. Assets: Cash (+)…

Q: Why do you think investors and creditors often focus on the Statement of Cash Flows when making…

A: GAAP:- Generally Accepted Accounting Principles is also called as GAAP  in short form. These…

Q: At the time the transaction occurred, which of the following would result in an increase in net…

A: Basis of accounting is the methodology under which the revenues & expenses are acknowledged in…

Q: Classify each item by type of business activity- operating, investing, or financing. Also indicate…

A: Statement of cash flow (CFS) refers to a financial statement of the company which shows the flows of…

Q: When a business provides services for cash, what is the effect on the accounting equation are…

A: When a business provides services for cash, cash is increased and revenues are increased. Revenues…

Q: What is the meaning of the term revenue? Does the receiptof cash by a business indicate that revenue…

A: Realization principle: It can be defined as a concept that is based on the rule that the revenue…

Q: Mary Company collected cash from an account receivable. Which of the following financial statements…

A: The transactions and events which can be measured in monetary terms are reported in the books…

Q: When a business provides services for cash, which elements of the accounting equation are affected?…

A: The assets are equal to the sum of liabilities and equity during an accounting period is termed as…

Q: t, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows) are helpful to the…

A: The most significant components of financial statements are the income statement, balance sheet, and…

Q: Preparing the statement of cash flows For each transaction, identify the appropriate section on the…

A: A cash flow statement is prepared by the company to measure the amount of cash inflows and cash…

Q: Which of the following account is affected from the drawings of cash in sole- * ?proprietorship…

A: Sole Proprietorship: It is a form of business where one person is solely responsible for all the…

Q: Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: business transactions. Determine the effect on assets, liabilities, and owner's equity of the…

A: Accounting refers to recording, analysing, communicating as well as interpreting the results to end…

Q: An accounting concept’s applied when the cash drawn by from the business is recorded as “Owner’s…

A: The basic assumptions, rules, or conditions specifying the constraints for the working of accounting…

Q: he ___________ is the process by which a company spends cash, generates revenues, and receives cash…

A: Solution Concept In a business there may be various activities conducted Every business has its core…

Q: Financial statements are prepared

A: Accrual accounting refers to a method of accounting in which the transactions are recorded when it…

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

A: Statement of cash flows forms a part of financial statement of the companies and is prepared with a…

Q: Which statement is true regarding the cash basis of accounting? a. Revenues are reported in the…

A: Cash basis refers to a major accounting method that recognizes revenues and expenses at the time…

Q: Which of the following would not be reflected in the statement of cash flows? A.Purchase of…

A: Statement of Cash Flows includes all transactions of cash inflows and cash outflows. These…

Q: How does paying cash for purchase of supplies affect the accounting equation?

A: Accounting Equation is as follows: Assets = Liabilities+ Equity (Owner's funds) Each accounting…

Q: True or False?    The cash basis of accounting is a system in which revenues are recorded when…

A: PLEASE GIVE A LIKE, your response matters  Answer: correct option is "False"

Q: The cash basis of accounting records revenues and expenses when the cash is exchanged, while the…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: -Interest paid by an invesment company will come under which kind of activity while preparing cash…

A: Cash flow statement is a part of financial statement, which summarizes the cash & cash…

Q: What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Ash Company experienced a business event that affected its financial statements as indicated below.…

A: Accounting equation indicates the effect of transactions and events took place in the organization…

Q: Which of the following shows how paying cash to purchase supplies will affect a company's financial…

A: Day to day transaction are the basis for the preparation of Company's Financial Statements. If a…

Q: What is cash flow statement? What are the importance of cash flow in a business?

A: The cash is an important and most liquid asset for the business. The cash flow statement is one of…

Q: Delta Company experienced an accounting event that affected its financial statements as indicated…

A: Accounting Equation :— It stated the relationship between assets, liabilities and Stockholder’s…

Q: Clearly

A:

Q: Which of the following is not a use of the statement of cash flows? a.Helps creditors analyze the…

A: The cash flow statement is prepared to estimate the cash inflow or outflow from the business.

Q: Under the accrual basis of accounting: cash must be received before revenue is recognized. events…

A: Accrual system of accounting recognises revenue whenever it becomes due.

Q: Which of the following is NOT TRUE about the Statement of cashflows a) is prepared on cash basis b)…

A: Statement of cash flow is a financial statement which represents the change in the balance of cash…

Q: Indicate how each business transaction affects the basic accounting equation. Paid cash for…

A: ANswer -    Every transactions have two effects in Financial Statements -    1. Paid cash for…

Q: why is there a need for a statement of cash flows?

A: There is a need for a statement of cash flows,even if income statement shows profit,due to the…

Q: accounting records the impact of a business event when it occurs, regardless of whether the…

A: There are two concepts of accounting, which are used mostly. These are cash basis of accounting and…

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