Which of the following statements is correct? Options: • The net income would still be the same regardless of accounting method that is used whether cash basis or accrual basis • Pre-collections initially recorded as income will overstate the profit at the end of the accounting period if no adjustment is done for unearned portion • Deferral is intended to recognize income earned but not yet received • Accrual of expenses will increase the expense element and will correspondingly decrease the liability

Q: Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle             Going…

A: Principles of Accounting : These are the rules of accounting which are known as GAAP's (Generally…

Q: Expense Recognition Question: Why is that sometimes there is no direct relationship between…

A: Accounting is based on a set of principles and rules and the expense recognition principle is one of…

Q: Net Income or Net Profit a.Net Income is less than Net Profit b.Are the same c.Net Profit is the…

A: Net Income or Net profit means when all the expenses has been deducted and net amount is calculated.

Q: Please explain the meaning of the following statement, I don't understand. The income reports net…

A: Income: It is often defined as the amount that is generated by a business from performing its…

Q: rue or False Unearned revenue is revenue that is earned but not yet collected

A: Solution Concept Unearned revenue                 The term unearned revenue means the revenue which…

Q: Using practical example discuss why current asset is not seen not part of the income  statement

A: Answer: As per Q/A guidelines, first question is answered. Please repost the question to be answered…

Q: 3. Regarding the underlying conceptual basis of accounting for compensated absences, review the…

A: Compensated absences refer to paid time off provided to employees by their employer, such as…

Q: excess earnings method, capitalized earnings approach, and discounted future earnings approach which…

A: ADJUSTED NET ASSETS METHODThe difference between the fair market value of the business assets and…

Q: How many of the following statements regarding the Revenue Recognition and Matching Principles are…

A: The revenue recognition principle state that organizations should recognize the revenue when the…

Q: ompany can not rely on net income as a valid measure to pay fixed charges

A:

Q: When current E&P has a deficit and accumulated E&P is positive, the two accounts are netted at the…

A: Some portion of earnings and profits of business are distributed to its shareholders in form of…

Q: Which of the following statements is not true of the accrual basis of accounting? O a. The accrual…

A: As per accrual basis of accounting the revenue and expense should be recognised as and when accrued.…

Q: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…

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: The concept of materiality: a                      Treats as material only those items that are…

A: The materiality concept in accounting states that all the items that are material to the company…

Q: The matching principle requires matching expenses incurred during an accounting period with the…

A: The objective of the question is to determine the accuracy of the statement about the matching…