What type of accounting recognizes revenues and expenses in the same accounting period that cash receipts and payments occur? finance method of accounting adjusting method of accounting cash basis of accounting accrual basis of accounting

Q: Does a payment on a liability account with cash show up in the statement of cash flows?

A: Cash Flow Statement - Under Cash Flow there are three type activities involved - Operating…

Q: The key accounting considerations relating to accounts payable are: Determining their existence and…

A: Accounts payable is a current liability.  As per IAS 1, Presentation of financial statements,…

Q: How do you find gross profit in financial accounting?

A: Gross profit is the income earned by the company after deducting the cost of goods sold from the…

Q: Under which basis of accounting are revenues and expenses reported in the income statement in the…

A: Accrual Accounting - Under Accrual Basis of accounting revenue is recorded only if earned and…

Q: Garcia Company recognized revenue on account. The recognition will affect which of the following…

A: According to the revenue recognition principle, the revenue is recognized at the time sales occurred…

Q: Which are the Elements of transactions Involving Interest?

A: The Answer:

Q: Which of the following accounting methods is commonly used for recognizing income and expenses in…

A: Accrual basis accounting is the most common accounting method used for recognizing income and…

Q: The assumption that requires that only those things that can be expressed in money are included in…

A: The generally  accepted principles of accounting are called concepts.The concept guide the…

Q: Which accounting principle requires expenses to be recognized in the period in which they are…

A: Accounting principle refers to the guidelines that organizations must follow while reporting the…

Q: Question: In accounting, what does the term "accrual" refer to? a) The recognition of revenue or…

A: The accounting records the transactions using different methods as cash basis accounting or accrual…

Q: Under IFRS, how should changes in accounting policy be recognized in the financial statements? a.…

A: Change in Accounting Policy:A Change in accounting policy occurs if there has been a change in the…

Q: Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities…

A: There are two type of bases used in accounting purpose. One is cash basis of accounting and other is…

Q: How does IFRS APPLY TO THE ACCOUNTING CYCLE AND FINANCIAL REPORTING?

A: IFRS - International Financial Reporting Cycle is the standard set by the IASB (International…

Q: Revenues and expenses must be recorded in the accounting period in which they were earned or…

A: The income and expenses are recorded in the income statement to estimate the profitability of the…

Q: Explain the components of balance of Payments Accounts and describe the  impact of deficit and…

A: The balance of payments (BOP), sometimes known as the balance of international payments (BIP), is a…

Q: Explain accounting issues related to disposition of accounts and notes receivable.

A: Accounts receivable refers to the amount that is owed to the company as a result of providing goods…