Ch3Quiz - 1 The time period assumption states that A revenue should be recognized in the accounting period in which it is earned B expenses should

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Sheet1 Page 1 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 time period assumption states that: A. companies must wait until the calendar year is completed to prepare financial statements. B. companies use the fiscal year to report financial information. *C. the economic life of a business can be divided into artificial time periods. D. companies record information in the time period in which the events occur. _______________________________________________________ 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 accordance with generally accepted accounting principles. *D. Revenue is recorded only when cash is received, and expense is recorded only when cash is paid. _______________________________________________________ 4. The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the:
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This note was uploaded on 02/13/2011 for the course ACCT 510 taught by Professor Tewes during the Spring '09 term at Davenport.

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Ch3Quiz - 1 The time period assumption states that A revenue should be recognized in the accounting period in which it is earned B expenses should

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