Homework 4A - Homework Lesson 4A 1 What is Accrual Basis Accounting Accrual Basis accountings deals with the timing of revenues and expenses and

Homework 4A - Homework Lesson 4A 1 What is Accrual Basis...

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Homework – Lesson 4A 1) What is Accrual Basis Accounting? 2) What is the step of the Accounting System immediately following the preparation of the Trial Balance? 3) What are the two main principles in Accrual Basis accounting that deal with the timing of revenues and expenses? 4) An unearned revenue is any transaction in which cash has been received when services have not yet been performed or goods not yet transferred. 5) According to the Revenue Recognition Principle, revenue is always recognized when cash isreceived. 6) A company recorded revenues of $4,000 for services it has not yet provided. Which principle of accounting does this violate?

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