1. Which of the following best describes the condition(s) that must be present for the
recognition of revenue?
a. The revenue must be earned, measurable, and collected.
b. The revenue must be earned and collectible.
c. The revenue must be
Which of the following is NOT correct?
The operating cycle sometimes is longer than one year in duration.
The operating cycle always is one year in duration.
The operating cycle sometimes is shorter than one year in duration.
1. In an accrual accounting system,
a. all accounts have normal debit balances.
b. a debit entry is recorded on the left-hand side of an account.
c. liabilities, owner's capital, and dividends all have normal credit balances.
d. revenues a
Stice Chap 1
Comprehensive income relates only to nonowner changes in equity.
The tendency to recognize unfavorable events early is an example of