Quiz 4 ch4 quiz key

Quiz 4 ch4 quiz key - Quiz 4 (Chapter 4) KEY 1. The...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz 4 (Chapter 4) KEY 1. The transaction approach to determining income is a concept in which 1. income is measured as the amount that an entity could consume during a period and be as well off at the end of that period as it was at the beginning. 2. market values adjusted for the effects of inflation or deflation are used to calculate income. 3. the financial statement effects of business events are classified as revenues, gains, expenses, and losses, which are used to measure and define income. 4. income equals the change in market value of the firm's outstanding common stock for the period. 2. Sales less cost of goods sold is called 1. Net sales 2. Gross profit 3. Operating income 4. Gain from sale 3. Under the general rule of revenue recognition, revenue is recognized when 1. marketability and market price are assured. 2. a contractual agreement exists, and cash collection is assured. 3.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Quiz 4 ch4 quiz key - Quiz 4 (Chapter 4) KEY 1. The...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online