Question 7Which of the statements below regarding revenue expenditures is TRUE?а.Revenue expenditures include ordinary repairs.b.Revenue expenditures are those that are necessary to maintain good operating condition.с.Revenue expenditures are usually small and routine in nature.d.All of the above are true.A Moving to the next question prevents changes to this answer.

Expenditure means money spend by the company in order to carry on the business. These expenditures…

Answered: Which of the statements below regarding…

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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27) Which one of the following category prepaid expenses belong to? a. Current asset b. Non-current asset c. Intangible asset d. Current liability
Kindly answer the following questions in problems 9-13 and 9-14.
41. Realization of revenue occurs when a. the item is formally recorded and reported in the financial statements b. noncash resources are converted into cash or rights to cash c. the actual exchange of noncash resources into cash С. d. when a transaction is both realized and realizable 42.A revenue recognition method that recognizes revenue before the time of sale is a. percentage-of-completion b. installment c. cost recovery d. point of sale С.
Argue that donated assets should not be reported in company’s balance sheet. Base your arguments on the conceptual framework.
Which of the following statements is most likely to be correct? Bad debts recovered account, if having an income tax benefit, is transferred to profit or loss summary account. A trial balance establishes the arithmetical accuracy of the accounting records. A well-maintained asset need not be depreciated. Drawing of goods by the owner should be debited to profit or loss summary account.
TRUE or FALSE Materality Concept Question 1. When it comes to determining the materiality of an amount, the accountant typically compares it to total assets, total liabilities, total expenses, etc.
Technically, offsetting in financial statements is accomplished when a. Gains or losses from disposal of non-current assets are reported by deducting from the proceeds the carrying amount of the assets and the related selling expenses. b. The accumulated depreciation is deducted from property, plant and equipment. c. The allowance for bad debts is deducted from accounts receivable. d. The total liabilities are deducted from total assets to arrive at net assets
Which statement below best describes when to record an expense? When the expense is paid. When the resource is consumed or a benefit is derived. Always taken in one period only. Never is recognized before revenue is recognized.
Accounting depreciation is sometimes referred to more generally as asset depreciation. True or false?
A service is a. intangible. b. perishable. c. created and consumed at the time it is performed (or nearly so). d. all of the above. e. a and c only
Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle v Information has predictive and confirmatory value. T. Relevance characteristic 8. Consistency characteristic
Revenue generally should be recognized Select one: when realized. when the performance obligation is satisfied. at the time of cash collection. at the end of production.

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