Statement 1: The worksheet of a merchandising entity has more accounts than that of a service entity. Statement 2: The reversing entries for merchandising entities are different from that of a service entity. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect. Statement 1: A loss occurs when there are more expenses than revenue. Statement 2: An income statement cannot be prepared correctly until all the accounts have been adjusted. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect.

Statement 1: The worksheet of a merchandising entity has more accounts than that of a service entity. Statement 2: The reversing entries for merchandising entities are different from that of a service entity. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect. Statement 1: A loss occurs when there are more expenses than revenue. Statement 2: An income statement cannot be prepared correctly until all the accounts have been adjusted. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. Both statements are incorrect.

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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Which of the following statements about accounting income and economic income is (are) correct? I. Accounting income ignores many unrealized gains/losses of assets and liabilities, but economic income fully recognizes unrealized gains/losses. II. Accounting income does not consider all the costs (e.g., opportunity costs), whereas economic income account for all types of costs. III. Income and capital gains/losses are treated different in the calculation of accounting income, while they are treated the same in the calculation of economic income. Group of answer choices a.I and II b. I and III c. II and III d. I, II and III
Which of the following statement is false? 1.Financial Accounting is optional. 2.Management Accounting is used by internal users. 3.Financial Accounting is based on double entry system. 4.Management Accounting is future oriented.
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What does deferred revenue generally represent on the balance sheet? Amounts that have been invoiced to a customer but not yet recognized as revenue Unapplied customer payments Projected future revenues that have not been invoiced Refunds due to customers
Accounting data does not consider off-balance sheet items, such as unused commitments of a firm. O True O False
5. Name an “economic cost” that is omitted from the accounting income statements that should be of interest to management.
Which of the following is not an example of an administrative cost? O A. Rent of the office building O B. Audit fees O C.Salary of the receptionist O D. Bad debts Clear my choice
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Identify the statement below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. The total amount debited need not equal the total amount credited for a particular transaction. The left side of a T-account is the debit side.
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