What statement(s) are true about the financial statements (balance sheet and income statement). Choose all that apply. This is not multiple choice. Both statements are for the same time frame Year end of each statement is different The income statement includes retained earnings, balance sheet does not Both statements are continuations from the previous years The accounting equation applies only to the balance sheet

What statement(s) are true about the financial statements (balance sheet and income statement). Choose all that apply. This is not multiple choice. Both statements are for the same time frame Year end of each statement is different The income statement includes retained earnings, balance sheet does not Both statements are continuations from the previous years The accounting equation applies only to the balance sheet

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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Using IFRS, how should prior period errors that are discovered in a subsequent reporting period be recognized in the financial statements? a. As an adjustment to beginning retained earnings for the reporting period in which the error was discovered. b. As a note in the financial statements that the error was previously made but has since been corrected. c. In the current period if it’s not considered practicable to report it retrospectively. d. In the statement of comprehensive income.
Which of the following is the incorrect effect of counterbalancing errors?a. None of the statements is incorrect. b. The statement of financial position at the end of the first period is incorrect. c. The income statements for three successive periods are incorrect. d. The statements of financial position at the end of the second period is correct.
What is the impact on the accounting equation when a payment of accountable payable is made? what is the impact on accounting equation when an account receivable is collected? what is the impact on the accounting equation when a sell occurs? what is the impact on the accounting equation when stock is issued, in exchange for assets? which of the following accounts is increased by a debit? which of the following camp do not increase with a debit entry? which of the following pairs increase with credit entries? which of the following pairs of accounts are impacted the same with debits and credits? which of the following count normally have a debit balance? what type of account is prepaid insurance?
Communication (income statement): The balance of Interest Expense from accruing interest to be paid has what effect on the income statement in the current year? Multiple Choice A. Decreases net income. B. No effect. C. Increases net income.
The “matching” principle in accounting refers to: Group of answer choices d. None of the above a. Aligning General Ledger account titles with business transactions c. Recognizing revenue and related expenses in the same period. b. Financing short term assets with short term financing
1. Define comprehensive income. What are the ways companies can present comprehensive income? 2. How are discontinued operations reported in the income statement? 3. Explain the difference(s) between investments in equity securities classified as current assets versus those classified as long-term (noncurrent) assets? 4. A summary of the company's significant accounting policies is a required disclosure. Why is this disclosure important to external financial statement users? 5. Deferred revenues represent liabilities recorded when cash is received from customers in advance of providing a good or service. What adjusting journal entry is required at the end of a period to recognize the amount of deferred revenues that were recognized during the period?
Which of the following statements is a usefulness of the income statement? A. Evaluate the past performance of the enterprise. O B. Income measurement involves judgment. OC Items that cannot be measured reliably are not reported. O D. Income numbers are affected by the accounting methods employed.
Which of the following is FALSE regarding the financial statements?
A statement of retained earnings is used to explaind the change in the amount of retained earnings between two successive balance sheet dates. True ir false?
TRUE OR FALSE. Please answer number 1-3 only and no need to explain thanks!
What is the term that refers to balance sheet accounts because they are relatively permanent and carried forward from year to year? Group of answer choices revenue accounts temporary (nominal) accounts fixed accounts real accounts
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