Which of the following statements is incorrect? A. The accrual method, which builds directly on the revenue and matching principles, ignores the timing of cash receipts or payments determining when to revenue or expenses. when recognize B. In accordance with the going concern assumption, the life of the business is presumed to be indefinite. C. Expenses are matched with revenues, not the reverse. D. In accordance with the unit of measure assumption, accountants normally revise the amounts to reflect the changing purchasing power of money due to inflation or deflation.

Q: Which of the following action shall explain the prudence concept in the most appropriate way?…

A: Prudence concept:- Amount of revenues recognised  and assets  should not be overestimated; Amount of…

Q: What account will not be found in the trial balance of a company using cash basis of accounting? *…

A: As per the cash basis of accounting the transaction is recorded at the time of inflows or outflows…

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Q: The concept of materiality (indicate all correct answers):a. Requires that financial statements be…

A:

Q: A system of accounting in which revenues are recognised when earned and expenses are recognised when…

A: Accrual system of accounting is the one in which expenses are recorded as and when they are incurred…

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…

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Q: Which of the following is true about the revenue journal? Please explain with full explanation  a.…

A: Revenue means the income which is generated from the business operations in terms of selling goods…

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A: Uses of reserves

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A: Unadjusted trial balance has balances of all general ledger accounts without any adjustments.…

Q: Most of the professional accountants support Historical cost accounting over the Current cost…

A: Historical cost accounting says that all assets and expenses in the business should be recorded at…

Q: Which of the following statements regarding adjusting entries is false? Group of answer choices A.…

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

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A: Accounting principle:   These are the guidelines which are to be applied while preparing the…

Q: Listed below are several information characteristics and accounting principles and assumptions.…

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Q: All of the following cash-basls accounting are false, excent does not match expenses incurred with…

A: Under cash basis accounting, the revenue earned and expenses incurred are recorded on the basis of…

Q: 1. Which statement about accrual basis of accounting is incorrect? A. Accrual accounting adheres to…

A: The accrual basis of accounting records the transaction when the transactions occurred, not at the…

Q: The company in the following question has made errors in accounting for the given transaction. State…

A: In the given case, Illini Chemicals had, instead of amortizing 20 percent of the R&D costs (as…

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: That a business may only report activities on financial statements that are specifically related…

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Q: If cash is received from a customer in the current period, but the related performance obligation is…

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Q: Which of the following transactions violates the balance sheet equation? (check all that apply)…

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Q: Choose the incorrect statement below:

A: The answer for the multiple choice question on choosing the incorrect statement and relevant…

Q: Choose one of the three situations below and provide the following information: a) type of change;…

A: The question is related to the Change in Accounting Estimate and Change in Accounting Policy. Change…

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Q: 2. A new manager of a retail company suggests that the company should prepare its Statement of…

A: The answer for the question on Cash - based Accounting and Accrual - based Accounting is discussed…

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A: Accounting principles: Accounting principles are the conventions or rules that must be followed in…

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

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

Q: A new manager of a retail company suggests that the company should prepare its  Statement of Profit…

A: Accrual-based accounting records the transaction when event is happened. In this, transaction are…

Q: A new manager of a retail company suggests that the company should prepare its Statement of Profit…

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Q: occur when a company receives cash before it can recognize revenue or when a comp. pays cash before…

A: Deferrals refers receipt or payment is done but to be recognised later. Estimates refers to a rough…

Q: Due to which concept, accounting does not record non-financial transactions? O a. Going concern…

A: Accounting principles are those rules, regulations and guidelines which are used by the accountants…

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: 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: Under accrual accounting, revenue is recorded and reported only Group of answer choices A. when cash…

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

Q: Which statement is incorrect? *

A: The flow of income that is generated by the regular sale of goods and services is regarded as…

Q: . Multiple-Choice Question Under the accrual basis of accounting, revenues are reported in the…

A: Solution: Accrual basis of accounting refers to the revenue and expenses to be recognized in…