chapter3a - Chapter 3 1. The time period assumption states...

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Chapter 3 1. The time period assumption states that: A. revenue should be recognized in the accounting period in which it is earned. B. expenses should be matched with revenues. C. the economic life of a business can be divided into artificial time periods. D. the fiscal year should correspond with the calendar year. 2. The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the: A. matching principle. B. cost assumption. C. periodicity principle. D. revenue recognition principle. 3. One of the following statements about the accrual basis of accounting is false . That statement is: 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 it is earned. 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. 4.
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This note was uploaded on 01/27/2010 for the course MGT 011A taught by Professor Hancock,john during the Spring '07 term at UC Davis.

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chapter3a - Chapter 3 1. The time period assumption states...

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