Answered: When a company decides to sell its…

When a company decides to sell its goods on credit, it should evaluate the effect on profit of Additional revenues Additional expenses a. Yes Yes b. Yes No c. No Yes d. No No

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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Question

When a company decides to sell its goods on credit, it should evaluate the effect on profit of

Additional revenues Additional expenses

a. Yes Yes

b. Yes No

c. No Yes

d. No No

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explain your answer and do not plagraized form anywhere
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Activity 1: Sales revenue should be recognized when goods and services have been supplied; costs are incurred when goods and services have been received. Which accounting concept governs the above? A.The substance over form concept B.The materiality concept C.The accrual concept D. The historical cost concept
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