Homework Answers
Solution:
The expense recognition principal says that expenses to generate revenue should be recorded in the same period to which the relative revenue is recognized.
Therefore, the basic principal involved with expense recognition is that "all costs that are used to generate revenue are recorded in the period the revenue is recognized".
Hence fourth option is correct.
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The basic principle involved with expense recognition is: Multiple Choice The business will continue to operate...
Saved Help Save & Exit Subm The basic principle involved with expense recognition is: Multiple Choice...
Saved Help Save & Exit Subm The basic principle involved with expense recognition is: Multiple Choice 20:57 The business is separate from its owners. O All transactions are recorded at the exchange price. O C ) The business will continue to operate indefinitely unless there is evidence to the contrary. O O C All costs that are used to generate revenue are recorded in the period the revenue is recognized
- Chapter 3) Saved Help The basic principle involved with expense recognition is: Save & Ext...
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Question 11 (1 point) Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? full disclosure principle revenue recognition principle cost principle O expense recognition (matching) principle Question 12 (1 point) Which of the following terms is used when assuming a business will continue to operate in the foreseeable future? separate entity concept time period assumption O monetary measurement concept Ogoing concern assumption
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Saved Help Save & Exit Subm The basic principle involved with expense recognition is: Multiple Choice 20:57 The business is separate from its owners. O All transactions are recorded at the exchange price. O C ) The business will continue to operate indefinitely unless there is evidence to the contrary. O O C All costs that are used to generate revenue are recorded in the period the revenue is recognized
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Question 11 (1 point) Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? full disclosure principle revenue recognition principle cost principle O expense recognition (matching) principle Question 12 (1 point) Which of the following terms is used when assuming a business will continue to operate in the foreseeable future? separate entity concept time period assumption O monetary measurement concept Ogoing concern assumption
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E 1-15 Multiple choice; concept statements, basic assumptions, principles Determine the response that best completes the following statements or questions. 1. The primary objective of financial reporting is to provide information a. About a firm's management team b. Useful to capital providers C. Concerning the changes in financial position resulting from the income- producing efforts of the entity d. About a firm's financing and investing activities 2. Statements of Financial Accounting Concepts issued by the FASB a. Represent GAAP b....
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Match each of the numbered descriptions with the principle or assumption it best reflects. Principle/Assumption Description 1. A company reports details behind financial statements that would impact users' decisions 2. Financial statements reflect the assumption that the business continues operating 3. A company records the expenses incurred to generate the revenues reported 4. Concepts, assumptions, and guidelines for preparing financial statements. 5. Each business is accounted for separately from its owner or owners. 6. Revenue is recorded when products and...
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