If a business records revenues when earned, regardless of whether cash has been received, and records...
If a business records revenues when earned, regardless of whether cash has been received, and records expenses when they are incurred, the accounting system is a(n)
a.modified cash basis of accounting.
b.cash basis of accounting.
c.revenue basis of accounting.
d.accrual basis of accounting.
Homework Answers
The correct answer is :
d.accrual basis of accounting.
Note:
The accrual basis of accounting records the revenues and expenses as and when they are earned or incurred, irrespective of the actual receipt or payment.
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If a business records revenues when earned, regardless of
whether cash has been received, and records...
If a business records revenues when earned, regardless of whether cash has been received, and records...
If a business records revenues when earned, regardless of whether cash has been received, and records expenses when they are incurred, the accounting system is a(n) a.modified cash basis of accounting. b.cash basis of accounting. c.revenue basis of accounting. d.accrual basis of accounting.
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits in an accurate measurement of income because it records revenues when earned, regardless of when the cash is recerved and matches the expenses incurred to produce that revenue by recording expenses on the last day of the accounting perio s more complete reports on the last day of the accounting period when cash is received when earned, regardless of when the cash is received,...
Question 17 4.77 pts If the total of the Income Statement Credit column exceeds the total...
Question 17 4.77 pts If the total of the Income Statement Credit column exceeds the total of the Debit column, the business has earned Question 18 4.77 pts In the basis of accounting, revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is received or paid. Question 19 4.77 pts In the basis of accounting, revenues are recorded only when cash is received and expenses are recorded only when cash is paid. Question 20...
The approach to preparing financial statements based on recognizing revenues when they are earned and matching...
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: The operating cycle of a business The revenue recognition principle The matching principle Accrual basis accounting Cash basis accounting
Total Pool Services earned $130,000 of service revenue during 2018. Of the $130,000 earned, the business...
Total Pool Services earned $130,000 of service revenue during 2018. Of the $130,000 earned, the business received $105,000 in cash. The remaining an $25,000, was still owed by customers as of December 31. In addition, Total Pool Services incurred $85,000 of expenses during the year. As of December 31, $10,000 of the expenses still needed to be paid. In addition, Total Pool Services prepaid $5,000 cash in December 2018 for expenses incurred during the next year. 1. Determine the amount...
Total Pool Services earned $115,000 of service revenue during 2018. Of the $115,000 earned, the business...
Total Pool Services earned $115,000 of service revenue during 2018. Of the $115,000 earned, the business received $93,000 in cash The remaining amount, $22,000, was still owed by customers as of December 31. In addition, Total Pool Services incurred $65,000 of expenses during the year. As of December 31, $8,000 of the expenses still needed to be paid. In addition, Total Pool Services prepaid $3,000 cash in December 2018 for expenses incurred during the next year. 1. Determine the amount...
Explain the difference between accrual basis accounting and cash basis accounting. Accrual basis accounting reports revenues...
Explain the difference between accrual basis accounting and cash basis accounting. Accrual basis accounting reports revenues and expenses when cash is received or paid Cash basis accounting reports revenues and expenses in the period in which a service has been performed when cash is received or paid in the period in which a service has been performed
$11,340 Question 2 1 pts In cash basis accounting, for tax purposes: Income is recognized when...
$11,340 Question 2 1 pts In cash basis accounting, for tax purposes: Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred. Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid. The cash basis is not allowed for businesses reported on Schedule C. Income is recognized when it is actually or constructively received and expenses are recognized...
If revenues are recognized and recorded when earned, the company is using the: A. cash basis...
If revenues are recognized and recorded when earned, the company is using the: A. cash basis of accounting. B. accrual basis of accounting. O c. adjustment basis of accounting. D. the expense basis of accounting.
Deferred revenue is revenue that is A. Earned and the cash has been received B. Not...
Deferred revenue is revenue that is A. Earned and the cash has been received B. Not earned but the cash has been received C. Earned but the cash has not been received D. Not earned and the cash has not been received
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits in an accurate measurement of income because it records revenues when earned, regardless of when the cash is recerved and matches the expenses incurred to produce that revenue by recording expenses on the last day of the accounting perio s more complete reports on the last day of the accounting period when cash is received when earned, regardless of when the cash is received,...
Question 17 4.77 pts If the total of the Income Statement Credit column exceeds the total of the Debit column, the business has earned Question 18 4.77 pts In the basis of accounting, revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is received or paid. Question 19 4.77 pts In the basis of accounting, revenues are recorded only when cash is received and expenses are recorded only when cash is paid. Question 20...
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: The operating cycle of a business The revenue recognition principle The matching principle Accrual basis accounting Cash basis accounting
Total Pool Services earned $130,000 of service revenue during 2018. Of the $130,000 earned, the business received $105,000 in cash. The remaining an $25,000, was still owed by customers as of December 31. In addition, Total Pool Services incurred $85,000 of expenses during the year. As of December 31, $10,000 of the expenses still needed to be paid. In addition, Total Pool Services prepaid $5,000 cash in December 2018 for expenses incurred during the next year. 1. Determine the amount...
Total Pool Services earned $115,000 of service revenue during 2018. Of the $115,000 earned, the business received $93,000 in cash The remaining amount, $22,000, was still owed by customers as of December 31. In addition, Total Pool Services incurred $65,000 of expenses during the year. As of December 31, $8,000 of the expenses still needed to be paid. In addition, Total Pool Services prepaid $3,000 cash in December 2018 for expenses incurred during the next year. 1. Determine the amount...
Explain the difference between accrual basis accounting and cash basis accounting. Accrual basis accounting reports revenues and expenses when cash is received or paid Cash basis accounting reports revenues and expenses in the period in which a service has been performed when cash is received or paid in the period in which a service has been performed
$11,340 Question 2 1 pts In cash basis accounting, for tax purposes: Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred. Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid. The cash basis is not allowed for businesses reported on Schedule C. Income is recognized when it is actually or constructively received and expenses are recognized...
If revenues are recognized and recorded when earned, the company is using the: A. cash basis of accounting. B. accrual basis of accounting. O c. adjustment basis of accounting. D. the expense basis of accounting.
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