he time period assumption is often referred to as the expense recognition principle. a. True b. False

Q: Select the best order for the following items in the income statement: 1. Income from continuing…

A:

Q: Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle             Going…

A: Principles of Accounting : These are the rules of accounting which are known as GAAP's (Generally…

Q: Why must companies record accrued interest revenue at the end of the accounting period?

A: Accrued interest: It is an interest which has already been earned has not yet been received. This…

Q: The statement 'revenue is recognized in the accounting period in which the performance obligation is…

A: The revenue recognition principal state that the the revenue should be recognised in books when the…

Q: Which Expense account is usually shown as the last Expense item on the Income Statement, regardless…

A: INCOME STATEMENT income Statement is one of the Important Financial Statement of the Company. It…

Q: If it is impracticable to determine the cumulative effect of an accounting change to any of the…

A: There are situations when company adopt to new method of accounting due to which changes occur in…

Q: Changes in accounting estimates are: A. Reported in past periods only. B. Reported as prior period…

A: Accounting estimates- Not defined by IAS 8 Adjustment of a carrying amount Periodic consumption Not…

Q: which of the following transactions and events would result in an improvement in Interest Coverage…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: The revenue recognition principle states that:  (a) revenue should be recognized in the accounting…

A: The revenue recognition principle is the accounting principle that states that how and when the…

Q: n aging analysis of accounts receivable is a study of the maturity of accounts receivable, such that…

A: Aging analysis is very important in financial health of company and credit policy of the company.

Q: a) Explain the credit term n/40; 1.8/26; 3/10? b) Differentiate between unlisted company and private…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Accounts receivable are long term assets for the business Select one: True False

A: Long term assets are generally referred to as the non current assets of the business which takes…

Q: beginning retained earnings

A: Beginning retained earnings is the opening balance of retained earnings of an accounting year. It is…

Q: TRUE OR FALSE? Advertising and bonuses are reported in the interim period when incurred.

A: Financial statements are those statements which are prepared at the end of accounting period in…

Q: Which of the following is a true statement about a company that uses the allowance method? Multiple…

A: The company makes sales for cash and accounts as well. The company making sales on account faces bad…

Q: The adjusting entry to account for estimated customer returns and allowances involves a a. credit to…

A: Sales returns means goods being returned by customer. Sales allowances means reductions are being…

Q: Required information [The following information applies to the questions displayed below.] Selected…

A: Income Statement - An income Statement is a financial statement that includes Revenue earned and…

Q: When a company records a capital expenditure as a revenue expenditure (i.e. expenses it), what…

A: Capital expenditures are nonrecurring expenses and should be reported on the asset side of the…

Q: accrued income in retained earnings at the end of year 2? a.Understated b.Cannot be determined from…

A:

Q: en a company adjusts its accounts receivable balance downward due to potential uncollectible…

A: Accounts receivable is an amount that is to be received by a company from an individual or a…

Q: Revenue Expenditures are Select one: O a. Expenses are shown in Balance Sheet O b. No direct effect…

A: Revenue Expenses: Revenue costs are listed in the revenue statement, which is part of the financial…

Q: Aging of receivable is used when determining how long it takes a company to collect its account…

A: Financial management not only deals with managing long term assets or projects, but it also focuses…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: he collection of customer’s account is credited to accounts payable. What is the effect of the error…

A: Answer) The correct Option is (D) No Effect Justifications: If collection from customer is credited…

Q: If the statement of financial position error is discovered in the year of error, what action is to…

A: Errors mean the data entered in the financial system is not as per accounting standard. There has…

Q: Under what conditions does a company recognize revenueover a period of time?

A: Revenue recognition principle: The revenue recognition principle refers to the revenue that should…

Q: A company is permitted to recognize revenue over a period of time? O True O False

A: Solution- Revenue is recognize when seller transferred  control of goods or services  to customers .…

Q: What is the effect of omission of accrued income in retained earnings at the end of year 2? a.…

A: A basic Accounting equation is given as under;   Assets = Equity + Liabilities    Meaning,  Total…

Q: What will be the result for failing to record the year-end adjustment for accrued interest on a note…

A: Notes payable is the amount of loan owed by the entity to its financiers. It is always a liabilities…

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: Corrections of significant errors of past periods are charged or credited directly to the Retained…

A: Retained earnings comes under the head liabilities in the balance sheet .

Q: Unearned revenues that will be earned in a relatively short period of time are listed on the balance…

A: Balance sheet is the financial statement that indicates the entity's financial position.

Q: Why are some accounts "temporary" and others are "permanent?" How does this relate to the financial…

A: There are two types of account namely permanent account and temporary account.   Permanent accounts…

Q: ous period’s financial statements are called?

A: It is common to occur errors in the financial statements, but whenever it is found that errors have…

Q: Which Expense account is usually shown as the last Expense item on the Income Statement, regardless…

A: Income statement will be prepared  before the  preparation of the statement of owner’s equity…

Q: Which of the following is sufficient to record the expense ?    a) Payment in the following period…

A: Expense- An expense refers to the cost that's employed in producing revenues in an exceedingly…

Q: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…