jan feb mar apr dec generallyamonthaquarterorayear

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Unformatted text preview: s (Time Period Assumption). ..... Jan. Feb. Mar. Apr. Dec. Generally a month, a quarter, or a year. Fiscal year vs. calendar year Also known as the “Periodicity Assumption” Chapter 3- 4 LO 1 Explain the time period assumption. Timing Issues Timing Issues Accrual- vs. Cash-Basis Accounting Accrual-Basis Accounting Transactions recorded in the periods in which the events occur Revenues are recognized when earned, rather than when cash is received. Expenses are recognized when incurred, rather than when paid. Chapter 3- 5 LO 2 Explain the accrual basis of accounting. Timing Issues Timing Issues Accrual- vs. Cash-Basis Accounting Cash-Basis Accounting Revenues are recognized when cash is received. Expenses are recognized when cash is paid. Cash­basis accounting is not in accordance with generally accepted accounting principles (GAAP). Chapter 3- 6 LO 2 Explain the accrual basis of accounting. Timing Issues Timing Issues Recognizing Revenues and Expenses Revenue Recognition Principle Companies recognize revenue in the accounting period in which it...
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This note was uploaded on 01/14/2012 for the course ACCOUNT 102 taught by Professor Adams during the Spring '11 term at Bradford School of Business.

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