Question

Arvon is increased with a debit is decreased with a credit ceased with a credit has a normal balance of a debit * The Dividends account appears on the income statement along with the expenses of the business must show transactions every accounting period. increased with debits and decreased with credits d a proper subdivision of stockholders' equity Which of the following is not generally an accounting time period A week A month Aquarter Ther e recognition principle dictates that revenue should be recognized in the accounting records when cash is received when the performance obligation is satisfied. the end of the month the period that income taxes are paid The w recognitio principle matches: ers with businesses with revenues with abilities with businesses es a large $1.000 sale on 11/30; sends the customer a statement on 12/5; and receives shop follows GAAP and applies the revenue recognition principle. When should it recognize the 50.000 December 10 The

Answer 1

Solution 26:

A revenue account is "increased with a credit"

Hence option c is correct.

Solution 27:

The dividends account "Is increased with debits and decreased with credits"

Hence option c is correct.

Solution 28:

A week is not generally an accounting time period.

Hence option a is correct.

Solution 29:

The revenue recognition principal dictates that revenue should be recognized in the accounting records "When the performance obligation is satisfied"

Hence option b is correct.

Solution 30:

The expense recognition principal matches "Expenses with revenues"

Hence option b is correct.

Solution 31:

Revenue of $1,000 sale should be recognized on the date of sale i.e. November 30

Hence option c is correct.