Homework Answers
Ans Recognizing revenue when it is earned and expenses when they are incurredm regardless of when cash changes hands.
There are majorly two basis of accounting which are cash basis and accrual basis. In cash basis, the revenue and expenses are booked when cash is received and paid respectively. In accrual method the revenues and expenses are recorded on due basis.
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What is the purpose of the accrual basis of accounting? Multiple Choice Recognize revenue when it...
Delta Company experienced an accounting event that affected its financial statements as indicated below: Asset Liab....
Delta Company experienced an accounting event that affected its financial statements as indicated below: Asset Liab. 1. Equity Rev. 1- Exp |- Net Inc. Stmt of Cash Flow NA NA OA Which of the following accounting events could have caused these effects on the elements of Delta's statements? A) Paid a cash dividend B) Incurred a cash expense C) Borrowed money from a bank D) Earned cash revenue 7)_ _What is the purpose of the accrual basis of accounting? A)...
When the amount of revenue collected in advance decreases during an accounting period: Multiple Choice Accrual-basis...
When the amount of revenue collected in advance decreases during an accounting period: Multiple Choice Accrual-basis revenues exceed cash collections from customers. Accrual-basis net income exceeds cash-basis net income. Accrual-basis revenues are less than cash collections from customers. May exceed, equal or be less than cash payments to suppliers.
The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned...
The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned and to match expenses with revenues. true or false
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,...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
1) If a company is using accrual basis accounting, when should it record revenue? A) when...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
The accrual basis of accounting recognizes A. Revenue when cash is received from customers B. Expenses...
The accrual basis of accounting recognizes A. Revenue when cash is received from customers B. Expenses when paid C. Revenue when all or a substantial portion is performed D. Revenue when contracts are signed
The accrual basis of accounting recognizes revenue when the performance obligation is satisfied and expenses when...
The accrual basis of accounting recognizes revenue when the performance obligation is satisfied and expenses when incurred (matching concept). true or false?
Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple...
Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple Choice 1 O If payment is received at the same time a service is provided, it does not matter whether cash basis accounting or accrual basis accounting is used; both would record the transaction with the same journal entry The cash basis of accounting works best when a lengthy delay exists between the timing of cash flows and the underlying business activities to which...
Most hospitals and healthcare organizations use accrual accounting which requires that revenue is recognized when services...
Most hospitals and healthcare organizations use accrual accounting which requires that revenue is recognized when services are performed (regardless of when the cash is collected) and expenses are recognized when resources are consumed in providing a service (regardless of when cash is paid). Group of answer choices True False
Delta Company experienced an accounting event that affected its financial statements as indicated below: Asset Liab. 1. Equity Rev. 1- Exp |- Net Inc. Stmt of Cash Flow NA NA OA Which of the following accounting events could have caused these effects on the elements of Delta's statements? A) Paid a cash dividend B) Incurred a cash expense C) Borrowed money from a bank D) Earned cash revenue 7)_ _What is the purpose of the accrual basis of accounting? A)...
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,...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple Choice 1 O If payment is received at the same time a service is provided, it does not matter whether cash basis accounting or accrual basis accounting is used; both would record the transaction with the same journal entry The cash basis of accounting works best when a lengthy delay exists between the timing of cash flows and the underlying business activities to which...
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