Multiple Choice
Which of the following concepts is important to accrual accounting?
A) Time period,because accrual accounting divides earnings into time periods
B) Monetary unit,because inflation is a big factor in the environment
C) Cash basis,because if cash is not received,revenue is not accrued
D) Entity concept,because personal transactions must be separated from business transactions
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Because of its objective nature,historical cost is
Q4: Place Corp.purchased supplies at a cost of
Q5: On May 1, 2017, Meehan Inc. lends
Q6: Costs incurred for purchases of merchandise result
Q7: Answer each of the following questions (a-c)with
Q9: A cost can be an asset or
Q10: Why is the cash-basis of accounting too
Q11: What effect does recognizing an accrued liability
Q12: Cuisine Company received a 6-month,6% note
Q13: Under the accrual method,expenses are recognized when