Homework Answers
6)
Expenses are recognised in the period in which it incurred not in the period in which it is paid. Revenues are recognised in the period it is earned not in the period in which it is received.
Hence, correct option is D.
Add Answer to:
6. Which is an example of the Matching Principle? a. Recognizing revenue when the work has...
show working and steps prepare journal entries for -when recognizing revenue under completed contract. -when recognizing...
show working and steps
prepare journal entries
for
-when recognizing revenue under completed contract.
-when recognizing revenue over time accodibg to percentage
completion.
-is there an overall loss? at the end if the year
sues Example 6-3: Not cummuletive 2012 2014 950,000 Costs incurred to date Expected future costs Customer billings to date Collections to date 280,000 520,000 150,000 120,000 2013 720,000 240,000 400,000 320,000 1,000,000 940,000 The contract price is $1 million. Prepare journal entries i. when recognizing revenue...
Question 2 (30%) Matching the following statement with the BEST accounting term: Description (1) A detailed...
Question 2 (30%) Matching the following statement with the BEST accounting term: Description (1) A detailed inventory record is maintained, recording each purchase and sale during the accounting period. (2) Systematic allocation of the cost of an asset to expense during the period of its useful life. (3) An increase in equity resulting from profitable operation. 4) A liability account used to record the obligation to provide future services when cash has been received before revenues have been earned. Term...
CA2-6 (Expense Recognition Principle) An accountant must be familiar with the concepts involved in determining earnings...
CA2-6 (Expense Recognition Principle) An accountant must be familiar with the concepts involved in determining earnings of a business entity. The amount of earnings reported for a business entity is dependent on the proper recognition, in general, of revenues and expenses for a given time period. In some situations, costs are recognized as expenses at the time of product sale. In other situations, guidelines have been developed for recognizing costs as expenses or losses by other criteria. Instructions (a) Explain...
Review the transactional information and identify the accounting assumption, principle, and or constraint to which it...
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...
5. The system of preparing financial statements based on recognizing revenues when the cabin when the...
5. The system of preparing financial statements based on recognizing revenues when the cabin when the cash is paid is called: A Accrual basis accounting. C. Revenue recognition accounting. B. Operating cycle accounting. D. Cash basis accounting. 6. The primary difference between deferred and accrued expenses is that deferred expenses have: A Been incurred and accrued expenses have not B. Not been incurred and accrued expenses have been incurred C Been recorded and accrued expenses have not been incurred D....
1. Assurning a long-term construction project makes an overall profit, during the interim years, percentage of...
1. Assurning a long-term construction project makes an overall profit, during the interim years, percentage of completion method accounting has impact on construction company's: Income Statement ONLY X Balance Sheet ONLY BOTH Income Statement and Balance Sheet None of the above 2. When a company write-off a bad debt under GAAP, it has impact on this company's: Income Statement ONLY Balance Sheet ONLY BOTH Income Statement and Balance Sheet Cash Flow Statement ONLY х 3. For a construction company working...
Choose the correct answer 1) When a change in accounting principle is reported, what is likely...
Choose the correct answer 1) When a change in accounting principle is reported, what is likely sacrificed? A.Relevance. B.Consistency. C.Conservatism. D.Representational faithfulness. 2)Which of the following changes should be accounted for using the retrospective approach? A. A change in the estimated life of a depreciable asset. B. A change from straight-line to declining balance depreciation. C. A change in policy increasing product warranty period from 1 year to 2 years for new products. D. A change from the completed-contract method...
Which of the following is least likely to be a reason why a long-term construction contract...
Which of the following is least likely to be a reason why a long-term construction contract would qualify for revenue recognition over time? Multiple Choice The customer controls the asset as it is created. The seller is creating an asset that has no alternative use to the seller, and the seller has the legal right to receive payment for progress to date. The seller is constructing an addition to property that is owned by the customer. The customer consumes the...
Classify each account type (asset, liability, equity, revenue or expense), and identify which financial statement it...
Classify each account type (asset, liability, equity, revenue or expense), and identify which financial statement it would be reported on: Account Account Type Financial Statement 1. Cost of Goods Sold 2. Inventory 3. Retained Earnings 4. Accounts Payable 5. Land 6. Dividends 7. Service Revenue 8. Prepaid Expense 9. Long Term Debt 10. Common Shares
Question 2 Classify each account type (asset, liability, equity, revenue or expense), and identify which financial...
Question 2 Classify each account type (asset, liability, equity, revenue or expense), and identify which financial statement it would be reported on: Account Account Type Financial Statement 1. Land 2. 3. 4. 5. 6. Cost of Goods Sold Prepaid Expenses Common Shares Sales Revenue Long Term Debt Accounts Receivable Salary Expense Accounts Payable Dividends 7. 8. 9. 10.
show working and steps
prepare journal entries
for
-when recognizing revenue under completed contract.
-when recognizing revenue over time accodibg to percentage
completion.
-is there an overall loss? at the end if the year
sues Example 6-3: Not cummuletive 2012 2014 950,000 Costs incurred to date Expected future costs Customer billings to date Collections to date 280,000 520,000 150,000 120,000 2013 720,000 240,000 400,000 320,000 1,000,000 940,000 The contract price is $1 million. Prepare journal entries i. when recognizing revenue...
Question 2 (30%) Matching the following statement with the BEST accounting term: Description (1) A detailed inventory record is maintained, recording each purchase and sale during the accounting period. (2) Systematic allocation of the cost of an asset to expense during the period of its useful life. (3) An increase in equity resulting from profitable operation. 4) A liability account used to record the obligation to provide future services when cash has been received before revenues have been earned. Term...
5. The system of preparing financial statements based on recognizing revenues when the cabin when the cash is paid is called: A Accrual basis accounting. C. Revenue recognition accounting. B. Operating cycle accounting. D. Cash basis accounting. 6. The primary difference between deferred and accrued expenses is that deferred expenses have: A Been incurred and accrued expenses have not B. Not been incurred and accrued expenses have been incurred C Been recorded and accrued expenses have not been incurred D....
1. Assurning a long-term construction project makes an overall profit, during the interim years, percentage of completion method accounting has impact on construction company's: Income Statement ONLY X Balance Sheet ONLY BOTH Income Statement and Balance Sheet None of the above 2. When a company write-off a bad debt under GAAP, it has impact on this company's: Income Statement ONLY Balance Sheet ONLY BOTH Income Statement and Balance Sheet Cash Flow Statement ONLY х 3. For a construction company working...
Question 2 Classify each account type (asset, liability, equity, revenue or expense), and identify which financial statement it would be reported on: Account Account Type Financial Statement 1. Land 2. 3. 4. 5. 6. Cost of Goods Sold Prepaid Expenses Common Shares Sales Revenue Long Term Debt Accounts Receivable Salary Expense Accounts Payable Dividends 7. 8. 9. 10.
Most questions answered within 3 hours.
-
Discuss creative strategy development and the roles of various
client and agency personnel.
asked 17 minutes ago -
For Healthcare
Briefly discuss why you think it would be more efficient to have
more public...
asked 12 minutes ago -
1)
a) Write the Taylor Series for f(x)=5.
b) Write the Taylor Series for f(x) =...
asked 20 minutes ago -
Normalization
Please explain the following concepts with specific example and process thank you
a) Problem of...
asked 24 minutes ago -
A gaseous mixture is composed of 1.5 moles of He, 2.5 moles of
N2 and an...
asked 32 minutes ago -
An engineer designed a
valve that will regulate water pressure on an automobile engine.
The engineer...
asked 46 minutes ago -
Skittles Original Fruit bite-size candies are multicolored
candies in a bag, and you can "Taste the...
asked 51 minutes ago -
You are the CEO of an organization based within the United
States and you are looking...
asked 53 minutes ago -
Read the following paragraph and its possible revisions. Then
choose the revision that has the best...
asked 55 minutes ago -
If 49.00 mL of 0.453 M lithium hydroxide is required to
neutralize 57.2 mL of phosphoric...
asked 1 hour ago -
These multiple choice question, so you just need to write answer
1,2,3 or 4. But please...
asked 1 hour ago -
Given the hall coefficient find the fermi velocity
given the hall coefficient Rh = E(y)/(J(x) B)...
asked 1 hour ago