about:blankSabyPes comQuestion 3 of 10View PoliciesCurrent Attempt in ProgressWhich statement is true concerning the accrual basis of accounting?Revenues are recognized when received from customers and expenses are recohized when incurred.ORevenues are recognized when earned and expenses are recognized when paid.O Revenues are recognized when received from customers and expenses are recognized when paid.O Revenues are recognized when earned and expenses are recognized when incurred.eTextbook and MediaSave for LaterAttempts:0 of 2 usedon this pageMacBook AirO O O 0

There are two accounting methods which are currently used by the business. One is cash basis of…

Answered: Which statement is true concerning the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PB: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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Identify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Common Stock B. Dividends C. Dividends Payable D. Equipment E. Income Tax Expense F. Income Tax Payable G. Service Revenue H. Unearned Service Revenue I. Net Income
Exercise 1-35 Accounting Concepts OBJECTIVE 06Â° A list of accounting concepts and related definitions is presented below. Concept Definition 1. Revenue a. Owners claim on the resources of a company 2, Expense b. The difference between revenues and expenses 3. Net income (1055) c. Increase in assets from the sale of goods or services 4, Dividend d. Economic resumes of a company 5. Asset e. Cost of assets consumed in the operation of a business 6, Liability f. Creditors' claims on the resources of a company 7. Stock holders, equity g. Distribution of earnings to stockholders Required: Match each of the concepts with its corresponding definition
Accounting information is considered to be relevant when it: Question 16 options: is verifiable and neutral. is understandable by reasonably informed users of accounting information. is capable of making a difference in a decision by the user. is received soon after events and transactions have occurred. Net income represents: Question 17 options: revenues and gains less expenses and losses from continuing and discontinued operations. net income plus/minus other comprehensive income. revenues and gains less expenses and losses from continuing operations. ongoing revenues and expenses before gains, losses, and discontinued operations.
D) going concern?example E) periodicity?example F)Revenue recognition principle? Example G)Matching concept? Example H)Accrual basis of accounting? Example I) Dual aspect of accounting? Explain example
Presented below are the assumptions, principles, and constraint used in this chapter. 1. Economic entity assumption 2. Going concern assumption 3. Monetary unit assumption 4. Periodicity assumption 5. Measurement principle (historical cost) 6. Measurement principle (fair value) 7. Expense recognition principle 8. Full disclosure principle 9. Cost constraint 10. Revenue recognition principle Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. a. Allocates expenses to revenues in the proper period. b. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.) c. Ensures that all relevant financial information is reported. d. Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) e. Indicates that personal and…
10. Which of these is a similarity between financial accounting and managerial accounting? Select one: A. Both report to the same group of accounting users. B. Both report past financial events. C. Both use the same accounting standards of MASB. D. Both provide information for decision making. 11. Which of the followings is NOT a temporary or nominal account? Select one: A. Utility Expense. B. Prepaid Insurance. C. Drawings. D. Depreciation Expense. 12. Which of the following statements related to expenses is CORRECT? Select one: A. Expenses decrease owner's equity and has a credit normal balance. B. Expenses increase owner's equity and has a debit normal balance. C. Expenses decrease owner's equity and has a debit normal balance. D. Expenses increase owner's equity and has a credit normal balance. Just answer the question without explanation. Thanks in advance
Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated? Group of answer choices 1.revenue recognition principle 2.expense recognition (matching) principle 3.cost principle 4.full disclosure principle
Explain five (5) qualitative characteristics of IFRS that is used to prepare financial statements to your colleagues at the meeting. (ii) Explain the difference between profit and profitability. (iii) Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.
Q32 Which of the principle as per GAAP states, “one must report enough information for outsiders to make informed decisions about the company”? a. Matching b. Disclosure c. Revenue d. Consistency
1. Materiality is driven by __________ of the financial statements and their needs. Question 1 options: a) Percentage b) Amount c) Users d) Misstatements
Explain five (5) qualitative characteristics of IFRS that is used to prepare financial statements to your colleagues at the meeting. Explain the difference between profit and profitability. Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.
B. Respond to the following statements and questions in thediscussion forum. Try to do this without looking back at the text.True (T) or False (F): T F1. Management accounting provides economicand financial information for external userssuch as shareholders, creditors and banks. 2. Financial accounting provides information formanagers and other internal users. 3. Financial accounting reports past results.  4. Management accounting is future oriented.  5. Management accounting is required to followgenerally accepted accounting principles. 6. Financial accounting examines monetary andnon-monetary events. 7. Cost accounting is used as a means of fixinga selling price. 8. Cost accounting looks at the company as awhole and not at the various units, jobs orprocesses. 9. Financial accounting is concerned with howand why profits arise. 10. Cost accounting depends entirely on historicalinformation 

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