When five vehicles are used for a single business, what expense method must be applied?Different methods of claiming vehicle expenses can be used for each vehicle.The actual expense method must be used for all vehicles.The standard mileage rate must be used for all vehicles.The second and third vehicles must use the actual expense method.

The correct answer is: The actual expense method must be used for all vehicles.Explanation:The…

Answered: When five vehicles are used for a…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 2AIC

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14. Entities must allocate the cost of all goods available for sale between a. the cost of goods on hand at the beginning and the cost of goods purchased during the period b. the cost of goods on hand at the end and the cost of goods purchased during the period c. the income statement and the statement of financial position d. all the choices are correct.
The expense matching principle states that: Multiple Choice Expenses are recognized when paid. All expenses are recognized when the corresponding revenue is recorded. Some expenses are recognized when the corresponding revenue is recognized and some are spread over time. Expenses are recognized when the invoice is received.
Answer full question. Answer both parts.
Which of the following best represents the matching principle criteria? Revenue is recognized when an order occurs and not when the actual sale is initiated. Expenses must be reported in a different period than the matching revenues. Revenue and expenses are matched based on when expenses are paid. Expenses are reported in the period in which they were incurred. 0000
Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. b. Selling inventory. c. Providing manufacturer warranties. d. Selling magazine subscriptions.
Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. O b. Providing manufacturer warranties. c. Selling magazine subscriptions. O d. Selling inventory.
Which of the following is treated as business expense? a. Installation cost of business equipment b. Freight-in c. Insurance while the goods are in transit to the taxpayer d. Freight-out
Due to this accounting principle I postpone the moment I reveal expenses on my goods to the moment I sell these good i.e. until the moment I am able to identify the corresponding revenue. This principle is called Select one: a. full disclosure principle b. revenue recognition principle c. consistency principle d. matching principle
What are the four different approaches to implementing expense recognition? Give an example of an expense that is recognized under each approach.
The adjusting entry for unearned revenue pertains to which of the following types of businesses? a. Service b. Merchandising c. Manufacturing d. Service and merchandising e. All of the above
The FASB has established a Five-Step process to recognize revenue. Which of the following is not one of those steps? A. Ability to identify the contract with the customer. B. Determination thatcollection of the entitled contractual consideration from the customer is probable. C. Properly identify all of the performance obligations within the contract. D. Ability to determine the transaction price. E. Properly identify all of the deliverables and allocate the transaction price to each.
Which of the following best represents the matching principle criteria?A. Expenses are reported in the period in which they were incurred.B. Expenses may be reported in a different period than the matching revenues.C. Revenue and expenses are matched based on when expenses are paid.D. Revenue is recognized when an order occurs and not when the actual sale is initiated

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