Reference no: EM132702129

Problem 1: The accrual basis of accounting

1) Is generally accepted for external reporting because it gives more useful information

2) Is not acceptable because it gives incomplete information about cash flows

3) Recognizes revenues when received

4) Recognizes expenses when paid

5) Eliminates the need for adjusting entries

Problem 2: Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?

1) Entering an asset amount in the Income Statement Debit column.

2) Entering a liability amount in the Income Statement Credit column.

3) Entering an expense amount in the Balance Sheet Debit column.

4) Entering a revenue amount in the Balance Sheet Debit column.

5) Entering a liability amount in the Balance Sheet Credit column.