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Unformatted text preview: on the Income Statement before the cash is received.
c is required to be used on the Statement of Cash Flows.
d is also called "cash-basis accounting".
e None of the above 3 Which of the following is true regarding IASB?
a This is an organization of the U.S. government.
b It is similar in form to GAAP.
c It is the group responsible for GAAP.
d It is the accounting standards written by the IFRS.
e It is the group responsible for writing IFRS. 4 Which of the following is true regarding unearned revenue?
a When it is received, both assets and stockholders' equity are increased.
b When it is earned, both assets and stockholders' equity are increased.
c When it is earned, stockholders' equity is increased and liabilities are decreased.
d When it is received, liabilities are increased and stockholders' equity is decreased.
e When it is earned, liabilities and assets are increased. 5 When a payment is received from a customer on an accounts receivable, the result of this receipt is to
a increase sales and increase assets.
b increase sales and decrease assets.
c increase net...
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- Spring '08