GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 3, Problem 3.1ME
To determine
Match the definitions with its related term by entering the appropriate letters.
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Students have asked these similar questions
Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used
once, more than once, or not at all.
Recorded when the performance obligation is satisfied.
a. Revenue recognition principle
V The reason for recording accruals and deferrals in adjusting entries.
b. Matching principle
Valuing assets at amounts originally paid for them.
C. Historical cost principle
Entity assumed to have a long life
d. Going concern assumption
Description of significant accounting policies and unusual events.
e. Full disclosure principle
v Information has predictive and confirmatory value.
T. Relevance characteristic
8. Consistency characteristic
n: In a sheet of paper, write TRUE if the statement is correct and FALSE if
the statement is incorrect.
1.
The revenue earned by a service business for rendering services for a fee is
commonly referred to as Service Income or Service Revenue.
2.
A Statement of Comprehensive Income may be presented using a “multistep statement” presentation only.
3.
Revenue includes both income and gains.
4.
If expenses are greater than income, the difference is net loss.
5.
The revenue earned by the merchandising business from its sales of goods
is commonly referred to as Sales.
6.
Income increases economic benefits during the period in the form of inflows
of cash from rendering services.
7.
The statement of Comprehensive Income shows information on an entity’s
financial performance during the period.
8.
A Statement of Comprehensive Income that shows expenses by its function
is referred to as prepared using a single-step approach.
9.
Expenses encompass both…
When recognizing revenue, a company has a performance obligation when it agrees
to
a. perform a service for a customer and receives cash payment
O b. sell a product to a customer after receiving payment
O c. receives cash payment
O d. perform a service or sell a product to a customer
Chapter 3 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Write the income statement equation and define...Ch. 3 - Explain the difference between a. Revenues and...Ch. 3 - Define accrual accounting and contrast it with...Ch. 3 - Prob. 6QCh. 3 - Explain the expense recognition principle.Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following matrix by entering either...
Ch. 3 - Complete the following matrix by entering either...Ch. 3 - Prob. 12QCh. 3 - State the equation for the net profit margin ratio...Ch. 3 - Which of the following is not a specific account...Ch. 3 - Which of the following is not one of the criteria...Ch. 3 - The expense recognition principle controls a....Ch. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 3.1MECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues The following transactions...Ch. 3 - Identifying Expenses The following transactions...Ch. 3 - Prob. 3.5MECh. 3 - Prob. 3.6MECh. 3 - Determining the Financial Statement Effects of...Ch. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying the Operating Activities in a...Ch. 3 - Prob. 3.11MECh. 3 - Prob. 3.1ECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues Revenues are normally...Ch. 3 - Identifying Expenses Revenues are normally...Ch. 3 - Prob. 3.5ECh. 3 - Determining Financial Statement Effects of Various...Ch. 3 - Recording Journal Entries Sysco, formed in 1969,...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Preparing an Income Statement Refer to E3-10....Ch. 3 - Prob. 3.12ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.1PCh. 3 - Recording Journal Entries (AP3-2) Ryan Terlecki...Ch. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Recording Nonquantitative Journal Entries (P3-1)...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Accounting for Operating Activities in a New...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Comparing Companies within an Industry Refer to...Ch. 3 - Analyzing a Company over Time Refer to the annual...Ch. 3 - Prob. 3.6CPCh. 3 - Evaluating an Ethical Dilemma Mike Lynch is the...
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Similar questions
- Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. earn now, collect now B. earn now, collect later C. earn later, collect nowarrow_forwardFill in the blank with these terms : long term, expense, balance sheet, Stockholder's equity, revenue, current revenue, service, costs, goods Revenues are monies an organization received in exchange for______ and______ it provides. Expenses are the ______incurred to generate .______ Net income is the difference between _______ and . ______ A________ indicates the financial position of an organization at a particular point in time. ______ assets generally are cash or will become cash within 1 year. ______ liabilities are obligations that must be paid after 1 year. ________ consists of contributed capital and retained earnings.arrow_forwardQuestion: Which accounting principle states that revenue should be recognized when it is earned and expenses when they are incurred? a. Matching principle b. Revenue recognition principle c. Conservatism principle d. Time period principlearrow_forward
- Using accrual accounting, when is revenue recognized?A. When cash transfers B. When the performance obligation is fulfilled C. When products is received FOB shipping point D. When the products is shipped FOB destinarrow_forwardThe revenue recognition principle dictates that revenue be recognized in the accounting period Select one: a. after it is earned. b. before it is earned. wh the performance obligation is satisfied. C. d. in which it is collected Previous page Next pa hparrow_forwardPresented 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…arrow_forward
- Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. A once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle " The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle Information has predictive and confirmatory value. f. Relevance characteristic 8. Consistency characteristicarrow_forwardBefore revenue can be recognized, the revenue recognition principle requires the _____. A. Product to be shipped B. Cash to be transferred C. Service to be booked D. Performance obligation be fulfillarrow_forwardTime left 0:51:0 The statement 'revenue is recognized in the accounting period in which the performance obligation is satisfied' best describes the a. consistency characteristic O b. expense recognition principle Ос. revenue recognition principle O d. relevance characteristic Next pagearrow_forward
- 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 principlearrow_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_forward2. Write TRUE if the statement is correct and if false, write the word or phrase that makes the statement correct. 1. The revenue earned by a service business for rendering services for a fee is commonly referred to as Service income or Service Revenue 2. A Statement of Comprehensive Income may be presented using a “multi-step statement" presentation only? 3. Revenue includes both income and gains. 4. If expenses are greater than income, the difference is net loss. 5.The revenue earned by the merchandising business from its sales of goods is commonly referred to as Sales.arrow_forward
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