The time period assumption states thatA the economic life of a company can be split into synthetic time periods.B companies have to wait until the calendar year is completed to prepare gaue won statements.C providers use the budget year come report jae won information.D carriers record info in the time period in i m sorry the events occur.
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An bookkeeping time duration that is one year in size is A a quarterly period.B a fiscal year.C an interim period.D a calendar year.
The revenue acknowledgment principle dictates that revenue should be known in the audit recordsA at the end of the month.B in the period that revenue taxes room paid.C as soon as services room performed.D only as soon as cash is received.
The cost recognition rule matchesA assets with owner"s equity.B assets v liabilities.C assets with expenses.D costs with revenues.
Which of the following statements about the accrual-basis of bookkeeping is false?A events that change a company"s jae won statements are recorded in the durations in which the occasions occur.B Accrual-basis is in accordance with typically accepted accountancy principles.C Revenue is recorded only as soon as cash is received, and also expense is recorded only as soon as cash is paid.D Revenue is known in the period in which services are performed.
The revenue acknowledgment principle dictates that providers recognize revenue in the audit periodA prior to services are performed.B in which solutions are performed.C in which it is collected.D after services are performed.
Under cash-basis accounting, companies record revenue just whenA cash is received.B it is earned.C solutions are performed.D the performance duty is satisfied.
Companies document an cost under cash-basis audit only once A lock pay out cash.B the performance obligation is satisfied.C it is incurred.D services are performed.
On June 30, a to press shop provides $1,000 of services to a client to custom print restaurant menus. The client is sent a invoice on July 5 because that the amount due. A examine in the lot of $1,000 is got from the client on July 25. The to press shop complies with GAAP and applies the revenue recognition principle. Once is the $1,000 revenue recognized? A July 25.B July 5.C June 30.D July 1.
An adjusting entry constantly affectsA an income statement account and also a balance sheet account.B an legacy account and a legal responsibility account.C an asset account and a revenue account.D an cost account and a revenue account.
If a utility company bill has actually not been received at the finish of the audit period, however utilities to be used throughout the period, thenA that is optional even if it is to document the expense before the bill is received.B an expense should be tape-recorded in the next accounting period when the invoice is received.C an cost should it is in recorded when the cash is payment out.D an adjusting entry need to be make to identify the price in the present period.
Prepaid expenses are A displayed on the balance sheet together assets.B presented on the balance sheet together liabilities.C displayed on the earnings statement as revenue.D not shown on a gaue won statement.
Revenues for which services are performed yet not yet obtained in cash or taped are calledA accrued revenues.B interim revenues.C unearned revenues.D prepaid revenues.
Expenses paid in cash and recorded together assets before they are used or consumed space calledA interim expenses.B accrued expenses.C prepaid expenses.D unearned expenses.
The collected depreciation account A is a contra revenue account through a debit balance.B is displayed as an cost on the income statement.C is shown on the balance sheet together a liability.D is a contra legacy account with a credit balance.
Accumulated Depreciation isA an owner"s equity account.B an price account.C a contra asset account.D a legal responsibility account.
An adjustments because that unearned revenueA has an asset and revenue account relationship.B rises an asset and also increases revenue.C to reduce a liability and also increases revenue.D reduce revenue and decreases an asset.
An adjusting entry that debits an expense and also credits an legacy is essential for A prepaid expenses.B accrued revenues.C accrued expenses.D unearned revenues.
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If an adjusting entry because that depreciation is no madeA assets will certainly be understated.B costs will it is in understated.C net earnings will it is in understated.D owner"s equity will certainly be understated.