EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Which of the following states that a transaction is not recorded in the books of accounts unless it is measurable in terms of money?
a.
Matching principle.
b.
Revenue recognition principle.
c.
Time period assumption.
d.
Monetary unit assumption.
What is false about the matching principle? a. Incurred expenses should be matched with earned revenues. b. It supports accrual accounting principles. Matches assets with liabilities d. It is in accordance with the Internatidwal Financial Reporting Standards.
Which of the following is not a criterion to recognize revenue under GAAP?A. The earnings process must be completed.B. A product or service must be provided.C. Cash must be collected.D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process
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- Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A. accrual basis accounting B. cash basis accounting C. tax basis accounting D. revenue basis accountingarrow_forwardWhich of the following is not a criterion to recognize revenue under GAAP? GAAP requires that the accrual basis accounting principle be used in the revenue recognition process. The earnings process must be completed. A product or service must be provided. Cash must be collected O O O Oarrow_forwarddo not copy which of the following is an accounting concept which serves as the basis for revenue and expense recognition : A- the time period assumption b- the matching convention c- the cash basis of accounting d- the entity principalarrow_forward
- Which of the following items will not be shown in the balance sheet of ahotel? A. customer loyalty value B. accounts payable C. Intangible assets D. accrued taxesarrow_forwardHow is the valuation of cuIrent assets affected if the company follows IFRS? ( OValuation is based on historical cost. OValuation is based on market adjustments. OValuation is based on LCM accounting. O Assets are expensed immediately. Aliability created for receiving cash for future services to be provided is termed O service revenue. O estimated warranty payable. Ounearned revenue. Oaccrued liability.arrow_forwardWhich of the following would not overstate current-period net income?a. Capitalizing an expenditure that should be expensed.b. Failing to record a liability as an expense.c. Failing to record a check paying an item in Vouchers Payable.d. All of the above would overstate net income.arrow_forward
- Which of the following statements is characteristic of accrual basis accounting? Expenses are recorded when payment is made. Revenue is recognized when payment is received. Transactions are recorded when they occur. The exchange of cash determines timing of revenue recognition.arrow_forwardThe accounting concept that supports reporting revenues in the period in which they are earned is called the: revenue recognition concept. B) accounting period concept. timing concept. D) adjusting concept.arrow_forwardWhen opposed to cash-basis accounting, does accrual-basis accounting offer more meaningful information? If not, why not? Give an example to support your argument.arrow_forward
- Why does accounting rely on inexact or approximate measures?arrow_forwardWhich of the following is an assumption made in the preparation of the financial statements? Select one: a. The current market value is assumed to be less relevant than the original cost paid. b. Financial statements are prepared for a specific entity that is distinct from the entity's owners. c. The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time. d. Financial statements are prepared assuming that inflationarrow_forwardA change from cash basis to accrual basis should be reported A. Retroactively as a correction of errorB. Retroactively as a change in accounting policyC. As component of income from continuing operationsD. As component of other comprehensive incomearrow_forward
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