Garcia Company recognized revenue on account. The recognition will affect which of the following financial statements? Statement of cash flowsIncome statementBalance sheetIncome statement and the balance sheet

According to the revenue recognition principle, the revenue is recognized at the time sales occurred…

Answered: Garcia Company recognized revenue on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which one of the following states that the life of a business can be divided into equal time periods? a. Revenue recognition principle. b. Accounting period assumption. c. Accrual concept. d. Economic entity concept.
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once.) a. Economic entity assumption b. Going concern assumption c. Monetary unit assumption d. Periodicity assumption e. Historical cost principle f. Revenue recognition principle g. Matching principle h. Full disclosure principle i. Relevance characteristic j. Reliability characteristic. k. Consistency characteristic 1. Stable-dollar assumption (do not use historical cost principle). 2. Earning process completed and realized or realizable. 3. Presentation of error-free information with representational faithfulness. 4. Yearly financial reports. 5. Accruals and deferrals in adjusting and closing process. (Do not use going concern.) 6. Useful standard measuring unit for business transactions. 7. Notes as part of necessary information to a fair presentation. 8. Affairs of…
Which of the following overall accounting concepts has a number of exceptions under GAAP? a) Historical cost b) Transaction basis c) Conservatism d) Accrual accounting
Accounting type Question: The basis of income Measurement is A. Matching concept B. Accounting Period concept C. Money Measurement concept D. Cost concept
On which financial statement are permanent accounts reported?
Recognition is the process of: A. Capturing, for inclusion in the statement of financial position or the statement(s) of financial performance, an item that meets the definition of one of the elements of the financial statements—an asset, a liability, equity, income or expenses B. Determining where an item should be presented in the financial statements C. Sorting assets, liabilities, equity, income or expenses on the basis of shared characteristics D. Adding together of assets, liabilities, equity, income or expenses that have shared characteristics
when putting together an income statement do the revenues and expenses have to put in order from highter amount to lowest?
When an entity has the benefit of particular service but it has not received the bill (invoice) to pay for it, this creates: a. prepayment b. accrued expense. c. accounts receivable d. revenue
Which of the following accounting principles prescribes that a company record its ex- penses incurred to generate the revenue reported? A) Going-concern assumption. B) Expense recognition (Matching) principle. C) Measurement (Cost) principle. D) Business entity assumption. E) Consideration assumption.
Use the list of concepts given to match the description of the concept to the concept.
On a multiple step income statement, the account interest expense would be located under A) Net sales B) COGS C) Other Revenues and expenses
Which of the following accounting principles requires that expenses be recognized in the same period as the revenue they helped to generate? A) Matching principle B) Conservatism principle C) Revenue recognition principle D) Cost-benefit principle

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