31 32 Question 31"Revenue is recognized when earned, regardless when received; Expense is recognized when incurred."O Cash BasisO Accrual BasisO Time PeriodO Materiality Question 32It represents increases in economic benefits during the period that results in increases in equity.net incomerevenueO net lossO expense

Accrual means where the revenue is booked but cash has not been received yet and expenses is booked…

Answered: Question 31 "Revenue is recognized when…

Question 31 "Revenue is recognized when earned, regardless when received; Expense is recognized when incurred." O Cash Basis Accrual Basis O Time Period Materiality

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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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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31 32

Question 32
It represents increases in economic benefits during the period that results in increases in equity.
net income
revenue
O net loss
O expense

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