Architecture

The Time Period Assumption States That The Economic Life Of A Business Can Be Divided Into

revenue should be recognized in the accounting period in which a performance obligation is satisfied.

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Which of the following statements about the accrual basis of accounting is false?(a) Events that change a company”s financial statements are recorded in the periods in which the events occur. (b) Revenue is recognized in the period in which services are performed. (c) This basis is in accord with generally accepted accounting principles. (d) Revenue is recorded only when cash is received, and expense is recorded only when cash is paid.
The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the:
Adjusting entries are made to ensure that:(a) expenses are recognized in the period in which they are incurred. (b) revenues are recorded in the period in which services are performed. (c) balance sheet and income statement accounts have correct balances at the end of an accounting period. (d) All the responses above are correct.
Each of the following is a major type (or category) of adjusting entries except:(a) prepaid expenses. (b) accrued revenues. (c) accrued expenses. (d) recognized revenues.
The trial balance shows Supplies $1,350 and Supplies Expense $0. If $600 of supplies are on hand at the end of the period, the adjusting entry is:
Rivera Company computes depreciation on delivery equipment at $1,000 for the month of June. The adjusting entry to record this depreciation is as follows.

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Anika Wilson earned a salary of $400 for the last week of September. She will be paid on October 1. The adjusting entry for Anika”s employer at September 30 is:
Which of the following statements is incorrect concerning the adjusted trial balance?(a) An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made. (b) The adjusted trial balance provides the primary basis for the preparation of financial statements. (c) The adjusted trial balance lists the account balances segregated by assets and liabilities. (d) The adjusted trial balance is prepared after the adjusting entries have been journalized and posted.
The trial balance shows Supplies $0 and Supplies Expense $1,500. If $800 of supplies are on hand at the end of the period, the adjusting entry is:
Entries made at the end of an accounting period to ensure that companies follow the revenue recognition and expense recognition principles.
An assumption that accountants can divide the economic life of a business into artificial time periods.

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Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available.

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