OPTION - C.
Revenue recognition principle requires that revenues to be recorded only after the business has satisfied its performance obligation.
As per matching principle, the revenue should be recorded only when the revenue has been earned but not when cash has been received.
Expenses is not recorded to match the revenues , but to match the matching principle.
There will be no time to divide the portion of revenues to particular period.
If you have any doubts please comment on the answer.
The revenue recognition principle requires O A. time to be divided into annual periods to measure...
The revenue recognition principle dictates that revenue should be recognized in the accounting records: O in the period that income taxes are paid. O when cash is received. O when the performance obligation is satisfied. O at the end of the month.
The revenue principle requires that a business record revenue when: O A. it prepares the invoice for the customer. OB. it has been earned and not before. O c. it receives an order from a customer. OD. it receives payment from a customer.
Under the revenue recognition principle, a good or service is considered transferred when A. all performance obligations have been specified B. the business has received cash from the customer OC. the customer obtains control of the good or service D. the transaction price has been agreed to
Which of the following requires a credit? Multiple Choice Decreases in liabilities Decreases in stockholders' equity Increases to assets Increases to liabilities 2. true or false Under the five-step revenue recognition model, a contract can be written, verbal, or implied. 3.When cash is received in advance of a performance obligation being satisfied, a(n) ______ called _________ is recorded.
The matching principle states that O A. a business's activities can be sliced into small time segments O B. companies should record revenue when it has been earned O c. financial statements can be prepared for specific periods OD. all expenses should be recorded when they are incurred during the period
Review the transactional information and identify the accounting assumption, principle, and or constraint to which it is related. Select an option below to match with each question: A) Time Period or Periodicity Assumption B) Economic Entity Assumption C) Fair Value D) Revenue and Expense Recognition Principle E) Revenue Recognition Principle F) Cost principle G) Full Disclosure Principle H) Separate or Economic entity Principle I) Expense Recognition Principle 1) The amount of goodwill recorded by a company that purchases another company...
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption Exercise 4-2 Identify the accounting concept that describes each situation below. Do not use any concept more than once. Periodicity assumption (a) is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Revenue recognition principle (b) indicates that personal and business recordkeeping should be separately maintained. Full disclosure principle (c) Ensures that all relevant...
Question 110 pts What items should be matched according to the matching principle? Group of answer choices Debits with credits Assets with liabilities Expenses with revenues Accruals with prepaids Flag this Question Question 210 pts When is revenue recorded under the cash-basis system of accounting? Group of answer choices When cash is received When revenue is earned When cash is received only if related expenses have been incurred In the period the related expenses are paid Flag this...
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...
CALCULATOR PRINTER VI Matching Question 257 Match the following statements to the appropriate terms. A twelve month accounting period Expenses paid before they are incurred Cost less accumulated depreciation Divides the economic life of a business into artificial time periods Efforts are related to accomplishments A contra asset account > Recognition of revenue when the performance obligation is satisfied Revenues recognized but not yet received Expenses incurred but not yet paid > A cost allocation process Question Attempts: 0 of...