estion 15 The "matching principle" is used in the Income Statement to report dividends & deferred taxes "revenues when they are legally earned" and "expenses when they were legally consumed" no matter when the actual cash changes hands cost of goods sold only ●"revenues when the cash is actually received" and "expenses when they are actually paid for" no matter when they were legally incurred VERSTE KTM

estion 15 The "matching principle" is used in the Income Statement to report dividends & deferred taxes "revenues when they are legally earned" and "expenses when they were legally consumed" no matter when the actual cash changes hands cost of goods sold only ●"revenues when the cash is actually received" and "expenses when they are actually paid for" no matter when they were legally incurred VERSTE KTM

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Intermediate Accoungting ll ch 16
11 - Which of the following is the case if the business sells goods in advance? A) There is an increase in both active and passive totals.B) Only active items increase.C) Active and passive sums remain the same.D) Asset items decrease and liability items increase.E) There will be a decrease in both active and passive totals. 11 - Which of the following is the case if the business sells goods in advance? A) There is an increase in both active and passive totals.B) Only active items increase.C) Active and passive sums remain the same.D) Asset items decrease and liability items increase.E) There will be a decrease in both active and passive totals.
19.Which of the following statements is incorrect? a. Trade receivables are recognized simultaneously with the recognition of related revenue when the criteria for revenue recognition are met. b. Under the gross price method, sales discounts are reported as a deduction from sales revenue. c. When accounts receivable are pledged against borrowing, the amount of accounts receivable pledged shall be included in the total receivables with disclosures. d. When discounting notes, the term discount period refers to the period of time that the note has been held by the endorser or payee; i.e. the period from the date of the note up to the date of discounting.
Answer both in detail
35. Statement 1: The installment-sales method defers only the gross profit instead of both the sales price and cost of goods sold. Statement 2: Under the cost-recovery method, a company recognizes no revenue or profit until cash payments by the buyer exceed the cost of the merchandise sold. Statement 3: Companies recognize profit under the cost-recovery method only when cash collections exceed the total cost of the goods sold. Statement 1: The installment-sales method defers only the gross profit instead of both the sales price and cost of goods sold. Statement 2: Under the cost-recovery method, a company recognizes no revenue or profit until cash payments by the buyer exceed the cost of the merchandise sold. Statement 3: Companies recognize profit under the cost-recovery method only when cash collections exceed the total cost of the goods sold. All statements are false Only one statement is true All statements are true Only one statement is false
63
IAS 7 Statement of cash flows allows entities to present cash flow from operating activities, using either indirect method or direct method. a. Explain why and how the following are adjusted when preparing the statement of cash flows following the indirect method • Depreciation/amortisation • Profit/loss on disposal • Interest receivable/investment income • Finance costs • Change in receivable • Change in inventory • Change in payables. b. The statement of cash flows is an important part of the financial statements. Outline the importance of statement of cash flows
Urgent
Question 12 Costs that are capitalized: O Show up as an expense on the income statement without ever being recorded on the balance sheet O None of the possible choices O Will initially be recorded as an asset on the balance sheet O Never exist as part of accrual accounting
Under the direct write-off method of accounting for uncol-lectible accounts: a. The current year uncollectible accounts expense is lessthan the expense would be under the allowance approach.b. The relationship between the current period net sales and current period uncollectible accounts expense illus-trates the matching principle.
Please Introduction and explanation 1 and 2 question answers both subparts answer no plagiarism please and what is correct option and incorrect option why? Explanation please
question 8 Why is the allowance method preferred over the direct write-off method of accounting for bad debts? Group of answer choices 1) Allowance method is used for tax purposes. 2) Estimates are used. 3) Determining worthless accounts under direct write-off method is difficult to do. 4) Improved matching of bad debt expense with revenue.