1. Historical cost2. Revenue recognition3. Going concern assumption4. Reporting entity concept5. Monetary unit concepta.b.C.d.e.Transactions are recorded in terms of units of money.Transactions are recorded based on the actual amount received or paid.Indicates that personal and business record keeping should be kept separate.Performance obligation has been satisfied.Businesses are expected to continue operating indefinitely.

1. Historical cost = b. Transactions are recorded based on the actual amount received or paid.This…

Answered: 1. Historical cost 2. Revenue…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 1MCQ: Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a...

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Similar questions

Companies need to report both monetary and nonmonetary data and information. A. Define these two terms and provide examples of each. B. Discuss what sources are available that provide companies with both types of data and information.
That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
Classify the following activities as part of the identifying (I), recording (R), or communicating (C) aspects of accounting.
Match each concept with the definition that best describes it. Expense recognition principle (matching [ Choose] principle) [ Choose ] Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur. Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash. The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied. Information that accurately depicts what really happened. The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue. An assumption that accountants can divide the economic life of a business into artificial time periods. Monthly or quarterly accounting time periods. An accounting period that extends from January 1 to December 31. Revenue recognition principle Time period assumption Calendar year…
Use the list of concepts given to match the description of the concept to the concept.
Define the measurement principle. Select one: a. Requirement that accounting records should all be reported in a single currency. O b. Assumption that a business will continue to operate into the foreseeable future. O c. Accounting for purchases must be at their original cost. d. Transactions should be recorded on the basis of objective evidence where different people looking at the evidence would all arrive at the same conclusion.
An area of information that shows a company's ability to manage its assets, such as inventory and accounts receivable. Select one: O a. Solvency b. Liquidity c. Profitability d. Operations Management O
Revenue is recorded when services have been performed or products have been delivered to customers. The accounting prin supporting this reporting is a. the adjusting principle. b. the income statement principle. O c. the cash basis principle. O d. the revenue recognition principle.
Accounting is the process of matching Select one: a. Revenues and Costs b. Potential and Real performance c. Cash inflows and outflows d. Benefits and Costs Accounting provides information on Select one: a. All of the answers are correct b. Financial conditions of an institution c. Company's tax liability for a particular year d. Cost and income for managers Public Accounting, as a sub-discipline of accounting, includes: Select one: a. Management Accounting b. Cost accounting c. Internal auditing d. Managerial Advisory services
43. The purchase of supplies on credit to be use on the main office of the entity, will cause a corresponding what effect on corresponding accounts? a. Increase in assets and decrease in liabilities b. Both increase in assets and liabilities c. Increase in liabilities and decrease in assets d. Both decrease in assets and liabilities
Solve the task. Describe the solution in detail. Construct a table. Draw a conclusion based on the result of the calculations. On the basis of the balance sheet of the company determine the turnover ratio of current assets and of accounts receivable. Consider the indicators
Which of the following is NOT a purpose of the Transaction Processing System?a. managing and reporting on the status of financial investmentsb. converting economic events into financial transactionsc. distributing essential information to operations personnel to support their daily operationsd. recording financial transactions in the accounting records

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