Accounting principles: Accounting principles are those principles and guidelines mentioned in accounting, which should be followed by every entity to prepare its financial statements. Cash Basis of accounting: As per this accounting system, transactions have been recorded in the financial statement only when these are incurred in cash. Like Revenues are recorded only when cash is received and expenses are recorded only when cash is paid. Time period assumption: According to time period assumption, the financial statements are prepared for a definite and particular period to analyze the financial performance on a timely basis. Revenue recognition principle: According to the principle, the revenue is to be recognized in the financial statements when the performance obligation related to the contract has been accomplished during the specified period. Expense recognition principle: According to the principle, the cost incurred is to be recognized as an expense when the assets or liabilities are used for the purpose to generate revenues in the particular period. To match: The statements with the concepts.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 3.1DIE

To determine

Accounting principles: Accounting principles are those principles and guidelines mentioned in accounting, which should be followed by every entity to prepare its financial statements.

Cash Basis of accounting: As per this accounting system, transactions have been recorded in the financial statement only when these are incurred in cash. Like Revenues are recorded only when cash is received and expenses are recorded only when cash is paid.

Time period assumption: According to time period assumption, the financial statements are prepared for a definite and particular period to analyze the financial performance on a timely basis.

Revenue recognition principle: According to the principle, the revenue is to be recognized in the financial statements when the performance obligation related to the contract has been accomplished during the specified period.

Expense recognition principle: According to the principle, the cost incurred is to be recognized as an expense when the assets or liabilities are used for the purpose to generate revenues in the particular period.

To match: The statements with the concepts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Kindly help me with accounting questions

he beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000

A company borrows $75,000 on a 9-month, 10% note on April 1. How much interest expense will be incurred by December 31?