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Question 11CorrectMark 6.00 out of 6.00Flag questionQuestion text(T / F) The matching principle is fundamental to the accrual basis of accounting.Select one:True CorrectFalseFeedbackCorrect. The accrual basis of accounting seeks to match effort and accomplishment by matching expenses against the revenues they created.The correct answer is 'True'Module 2"Y" Company began the accounting period with $60,000 of merchandise, and net cost of purchases was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period. The cost of goods sold of Y Company for the period is:
Question 2CorrectMark 10.00 out of 10.00Flag questionQuestion textA business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:Question 3
CorrectMark 10.00 out of 10.00Flag questionQuestion textOn a sales invoice, "2/10, n/30" meansQuestion 4CorrectMark 10.00 out of 10.00Flag questionQuestion textThe major differences between unclassified and classified income statements areSelect one:
a. A classified income statement only has two categories—revenues and expenses. An unclassified income statement divides both revenues and expenses into operating and non-operating items.b. None of these.c. An unclassified income statement only has two categories—revenues and expenses. A classified income statement divides both revenues and expenses into operating and non-operating items. Correctd. An unclassified income statement is made available to the public, while a classified income statement is private.e. There is no real difference. The terminology depends upon the company's industry classification.FeedbackThe correct answer is: An unclassified income statement only has two categories—revenues andexpenses. A classified income statement divides both revenues and expenses into operating andnon-operating items.