What account will not be found in the trial balance of a company using cash basis of accounting? * A. sales B. accrued expenses C. insurance expense D. depreciation expense E. answer not given

Q: Studying GAAP Accrual accounting. There is also cash-basis accounting which does not comply with…

A: Cash-basis accounting is an accounting method that records transactions only when money is…

Q: Which of the following transactions would be recorded if using the accrual basis ofaccounting but…

A: Given: To determine the following transactions would be recorded if using the accrual basis…

Q: hen a company receives cash from customers before earning the revenue,----------------------will be…

A: As per revenue recognition principle a revenue is recognized only when the service has been provided…

Q: The treasurer of Building Materials Inc. enters into a fair value hedge at the end of the third…

A: Comprehensive income: It includes both the net earnings earned by an entity as a result of it's…

Q: Which of the following items is not a specific account in acompany’s accounting records?a. Accounts…

A: Accounts receivable is the payment which the company will receive for the goods sold on credit from…

Q: Which account is least likely to be debited when revenueis recorded?a. Accounts Payableb. Accounts…

A: Revenue account is credited when revenue is recorded.

Q: What are Accrued expenses?     Always recorded in cash-basis accounting     Expenses from an…

A: Accrued expenses means the expense which has been due but not paid.             There might be some…

Q: Which of the following accounts would not appear in aclosing journal entry?a. Interest Revenueb.…

A: Closing entries are done at the end of accounting period to make revenues and expenses account to…

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a  business entity on a…

Q: Which statement is incorrect? Under cash basis of accounting,

A: Cash basis of accounting:   It is a method of accounting adopted by companies where the transactions…

Q: Which one of the following best describes the allowance for doubtful accounts? a.Statement of…

A: Allowance for doubtful debt is created for the accounts receivables whose recovery is uncertain. It…

Q: When a company provides a service to a customer but has not yet received payment, what type of…

A: As per accrual basis of accounting, revenue is to be recognized as and when earned and expenses as…

Q: Which of the following accounts is not a permanent account?   Select one: a. Utilities Expense b.…

A: A permanent account is the account which is not closed at year end and same is carried to balance…

Q: A change from cash basis to accrual basis should be reported A. Retroactively as a correction of…

A: Cash basis refers to the accounting of the transactions as and when the cash is received. Whereas…

Q: How is the valuation of cuIrent assets affected if the company follows IFRS? OValuation is based on…

A: SOLUTION- HISTORICAL COST  IS THE ORIGINAL OF AN ASSET , AS RECORDED IN AN ENTITY'S ACCOUNTING…

Q: Which one of the following accounts is unlikely to ever be seperately disclosed in the income…

A: Financial statement:The financial statement is the statement or the record that is prepared by the…

Q: receipt of cash from customers in payment for products or services

A: First option is wrong because the prepaid expense is the expense paid in advance. A credit to…

Q: Which of the following accounts should be closed?

A: Closing entries are those entries which are prepared at the end of accounting period. This will…

Q: 2) Accounts receivable erroneously debited to note receivable  Effect on retained earnings -Since…

A: We know that both the accounts receivable and notes receivable are current assets. Retained earnings…

Q: Accounting type Question: Which of the following is a non operating expense? A. Salary of Managing…

A: Interest expense is generally considered a non-operating expense. Non-operating expenses are costs…

Q: occur when a company receives cash before it can recognize revenue or when a comp. pays cash before…

A: Deferrals refers receipt or payment is done but to be recognised later. Estimates refers to a rough…

Q: When an entity has the benefit of particular service but it has not received the bill (invoice) to…

A: Prepayment: When payment is made in advance before receiving goods or services, then the payment is…

Q: When converting accrual basis to cash basis of accounting, which of the following adjustments should…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Q: What is the difference between the cash basis and accrual basis of accounting as to the following:…

A: The answer for the theory question on difference between cash basis and accrual basis of Accounting…

Q: Which sentence is incorrect? Select one: a. Cash-basis accounting is not in accordance with…

A: Accounting principles are rules and regulations that are followed in the preparation of fair and…