Financial Accounting Chapter 2

Financial Accounting Chapter 2 - received. Accrual...

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Financial Accounting Chapter 2: Revenue in the income statement for the year ended December 31, 2011 equals the: - Amount earned by selling goods or services to customers during 2011 Revenue: - Amount earned by selling goods or services to customers Journal entry a law firm records when it provides legal services for a client who will pay in a later period includes a: - Debit to Accounts Receivable - Credit to Legal Service Revenue Revenue Recognition Principle: - Revenues should be recognized when they are earned, not necessarily when cash is
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Unformatted text preview: received. Accrual adjustments affect liabilities and expenses:-Accrual adjustments can increase liabilities and increase expenses. Depreciation:-Process of allocating the cost of buildings, vehicles, and equipment to the accounting period in which they are used Amounts collected in advance of being earned are:-Deferred revenue-A liability-Unearned revenue Temporary Accounts are found in:-The income statement....
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