chpt4 - SO1-Ch. 4 Accrual Accounting Concepts Explain the...

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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. The ____ principle: requires that efforts be related to accomplishments. supports accrual accounting principles. Answer: Matching
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. Applying ____ accounting results in a more accurate measurement of net income for the period than does ___ basic accounting. Answer: accrual, cash
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. The ___ ___ assumption states that the economic life of a business can be divided into artificial time periods. Answer: time period
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. An accounting time period that is one year in length is called a _____. Answer: fiscal year
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. Management usually wants ___ financial statements and the IRS requires all businesses to file ___ tax returns. Answer: monthly, annual
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. An accounting period can be how long? Answer: month, quarter, year
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. The revenue recognition principle dictates that revenue should be recognized in the accounting records when … Answer: it is earned. (i.e. In a service-type business, revenue is considered earned when the service is performed)
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. ABC Company follows the revenue recognition principle. ABC repairs a lawn mower on September 30. The customer picks it up on October 1 and mails the payment on October 7. ABC receives the payment on October 10. When should ABC show that the revenue was earned? Answer: September 30
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SO1--Ch. 4 Accrual Accounting Concepts Explain the revenue recognition principle and the matching principle. A company buys an office building for $10 million. Over what period should the cost be written off? Answer: Over the useful life of the building
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SO2--Ch. 4 Accrual Accounting Concepts Differentiate between the cash basis and the accrual basis of accounting. The ___ basis of accounting is not in accordance with GAAP. Answer: Cash
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Differentiate between the cash basis and the accrual basis of accounting. When wages are incurred in one period and paid in the next period, which account would appear on the balance sheet at the end of the first period? Answer:
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chpt4 - SO1-Ch. 4 Accrual Accounting Concepts Explain the...

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