Accrual basis accounting

Assignment Help Accounting Basics
Reference no: EM1356579

A. Which of the following is not one of the four conditions that normally must be met for revenue to be recognized according to the revenue principle for accrual basis accounting?
a. The price is fixed or determinable.
b. Services have been performed.
c. Cash already has been collected.
d. Evidence of an arrangement for customer payment exists.

B. The matching principle controls

a. Where on the income statement expenses should be presented.
b. How costs are allocated between Cost of Goods Sold (sometimes called Cost of Sales)
and general and administrative expenses.
c. The ordering of current assets and current liabilities on the balance sheet.
d. When costs are recognized as expenses on the income statement.

C. Which of the following would not be considered a recurring item on the income statement?

a. Administrative expenses.
b. Sales revenues
c. Selling expenses.
d. Loss on disposal of a business division.

D. If a company decides to record an expenditure as an asset rather than as an expense, how will this decision affect net income in the current period?
a. Net income will be higher.
b. Net income will be lower.
c. Net income will not be affected by this decision.
d. It's a mystery; nobody really knows.

E. When should a company report the cost of an insurance policy as an expense?

a. When the company first signs the policy.
b. When the company pays for the policy.
c. When the company receives the benefits from the policy, over its period of coverage.
d. When the company receives payments from the insurance company for its insurance
claims.

F. When expenses exceed revenues in a given period (and there are no gains or losses),

a. Stockholders' equity will not be impacted.
b. Stockholders' equity will be increased.
c. Stockholders' equity will be decreased.
d. One cannot determine the impact on stockholders' equity without additional information.

G. Which account is least likely to be debited when revenue is recorded?

a. Accounts payable c. Cash
b. Accounts receivable d. Unearned revenue

Reference no: EM1356579

Questions Cloud

Does a group always need a leader to function well : Does a group ALWAYS need a leader to function well and is there a single, true leader in this group
Configuring dhcp with alternate ip address configuration : By configuring DHCP with an Alternate IP Address Configuration. Describe how this technique could be used in an IT environment of your choosing.
Concepts of personality and psychopathology : How would Rogerian concepts of personality and psychopathology apply to his situation?
Bias in politics : What can done to improve our capacity to choose good people for the job and comfort us that we have done so adequately and fairly.
Accrual basis accounting : Determine which of the following is not one of the four conditions that normally must be met for revenue to be recognized according to the revenue principle for accrual basis accounting
Company acquistion-purchase-pooling methods : Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4. The following information pertains to Wheal Company on the date of acquisition:
Effectiveness of the therapy or strategy approaches : Locate 2 articles published in last 5 years that discuss the effectiveness of the two therapy or strategy approaches your choose (Existential Orientation/Therapy and Cognitive Behavioral Therapy)
Explain business scenario and specify types of constraints : Explain a business scenario and specify the types of constraints that would be appropriate to make sure the integrity of the database. For example, an airline reservation system should not make a reservation.
Find the break-even point for each process : Find the break-even point for each process and what is the monthly profit or loss if the company chooses the manual process and sells 70000 bags per month?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Comparing and contrasting federal and state tax research

Write down a 3-5 pg paper comparing and contrasting Federal and state tax research. Examine the different constitutionality challenges with regard to Federal and state taxes.

  Question of treasury securities

Suppose that you've a short investment horizon (less than one year). You're considering two investments: a one-year Treasury security and 20-year Treasury security.

  Allocate purchase price over basket of assets

What is the acquisition cost of each asset? Prepare a journal entry to record the acquisition. Danny plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2008 on these newl..

  Finding useful life of equipment

Werner Chemical, Inc., leased a protein analyzer on September 30, 2013-Depreciation is recorded on a straight-line basis at the end of each fiscal year. The useful life of the equipment is five years.

  Expenses incurred and retained earnings relationships

Assume that retained earnings increased by $240,000 from December 31, 2005, to December 31, 2006, for Miller Corporation. During the year, a cash dividend of $140,000 was paid.

  Compute the equivalent units of production

Evaluate the equivalent units of production for each cost element in the Creation Dep. for the month just ended. Find out the average cost per equivalent unit for each cost element.

  How fuunds are disclosed and reported

Find a newspaper or magazine even online and select an article relating to the use of governmental funds by state, county, local government, etc on an activity.

  Compute the total amount of dividends

Compute the total amount of dividends that was paid to each class of stock, b) Compute the amount of dividends per share for each class of stock.

  Tax effect-four batches of new stock

Brian purchased 500 shares of the substantially identical stock for $3,000. What is the tax effect fir Brian as well as what will be the basis of each of four batches of new stock?

  Journalization of below events

Gilbert Corporation has an opportunity to acquire a company which produces one of the parts it uses in its manufacturing process. After careful analysis, Gilbert has decided to raise the necessary capital for the acquisition by issuing $3,000,000 ..

  Balanced scorecard and perspectives on performance

Make notes on the following two items to help your manager to understand their meaning: The balanced scorecard and its perspectives on performance

  Trade controls-tariffs-subsidies

Describe the following trade controls: Tariffs, subsidies, and quotas. How do these trade controls affect relationship of trading partners and what is their value in international business.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd