An accrual occurs when:a) Cash is paid after an expense is recordedb) Cash is received before a sale is recordedc) Cash is paid before an expense is recordedCash is received andd)simultaneouslyrecorded

Explanation of Accrual:Accrual refers to the accounting method where revenues and expenses are…

Answered: An accrual occurs when: a) Cash is paid…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 1EA: Identify whether each of the following transactions, which are related to revenue recognition, are...

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Similar questions

Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. sold goods to customers on credit B. collected cash from customer accounts C. sold goods to customers for cash D. collected cash in advance for goods to be delivered later
Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A. accrual basis accounting B. cash basis accounting C. tax basis accounting D. revenue basis accounting
Under accrual accounting, revenue should be recognized and recorded on the income statement: Select one: O When cash is received O When earned
Which account is least likely to be debited when revenueis recorded?a. Accounts Payableb. Accounts Receivablec. Cashd. Unearned Revenue
When converting from cash basis to accrual basis accounting, which of the following adjustments should be made to cash receipts from customers to determine accrual basis service revenue. a. Subtract ending accounts receivable. b. Subtract beginning unearned service revenue. c. Add ending accounts receivable. d. Add cash sales.
Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities B.revenue C.a contra account to sales revenue D.cash from operating activities
Which of the following states that a transaction is not recorded in the books of accounts unless it is measurable in terms of money? a. Matching principle. b. Revenue recognition principle. c. Time period assumption. d. Monetary unit assumption.
The revenue recognition principle states that revenue should be recorded in the same period as the cash is received. O True O False
A "sale on account" results in a debit to: Accounts Receivable O Cash O Capital Accounts Payable
An expense transaction is posted to accounts payable and is assigned to a vendor. In which account will this transaction be reflected on a cash-basis Profit and Loss report? Uncategorized Expense Uncategorized Income Unapplied Cash Bill Payment Expense Unapplied Cash Payment Income Sales of Product Income
UNDER THE ACCRUAL BASIS OF ACCOUNTING, IF CASH IS RECEIVED PRIOR TO THE SALE, THEN: A. REVENUE IS RECOGNIZED WHEN THE CASH IS RECEIVED. B. A LIABILITY IS RECOGNIZED WHEN CASH IS RECEIVED. C. A LIABILITY IS REMOVED FROM THE SYSTEM WHEN THE CASH IS RECEIVED. D. REVENUE IS REMOVED FROM THE SYSTEM WHEN THE SERVICES HAVE BEEN PERFORMED OR THE GOODS HAVE BEEN DELIVERED.
Under the accrual basis of accounting - if cash has been received before the revenue has been earned, which of the following journal entries should be recorded? A) Debit Cash, Credit Unearned Revenue. B) Debit Cash, Credit Sales Revenue. C) Debit Unearned Revenue, Credit Cash. D) Debit Cash, Credit Accounts Receivable.

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An accrual occurs when: a) Cash is paid after an expense is recorded b) Cash is received before a sale is recorded c) Cash is paid before an expense is recorded Cash is received and d) simultaneously recorded