Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current liability. С. expense. d. revenue.

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

Q: Which of the following accounts does not appear in the acquisition and expenditure cycle?a. Cash.b.…

A: Acquisition and expenditure cycle: It includes a set of all the business activities that are…

Q: The revenue recognition principle dictates that revenue be recognized in the accounting period…

A: The revenuerve recognition principle states that every business organization should recognize the…

Q: Liabilities are

A: Liabilities are not involved in closing entries. This is because only temporary accounts of income…

Q: The expense recognition principle (“matching”) controlsa. Where on the income statement expenses…

A:

Q: dentify whether each account type is permanent or temporary: Assets I Select] Liabilities ISelect]…

A: Solution: Permanent accounts are those which are present on balance sheet and temporary accounts are…

Q: Revenue is recorded when services have been performed or products have been delivered to customers.…

A: Introduction: Accounting Principals are created in order to increase the precision of financial data…

Q: A debit balance in the Retained Earnings accounts is reported as a (an) a. asset b.…

A: Retained Earnings refers to amount of Profit set aside by the company during the year. it is known…

Q: In which of the following types of accounts are increases recorded by credits?   A. revenues and…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Which one of the following statement is TRUE? a. Cash is non-current asset b. Outstanding expenses…

A: Current assets are all those assets that are realizable to cash within one year such as accounts…

Q: Making insurance payments in advance is an example of: Select one: a. An accrued receivable…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the…

Q: Money received from customers for products to be delivered in the future is recorded as: B . an…

A: Cash received from the customers will be considered as an asset. Whereas a liability will be created…

Q: When a customer eventually pays for items that have been purchased on credit, the transaction will…

A: Here, Customer is our Debtor.  Company usually sales its goods on credit and that customer who…

Q: Consider the following accounts and identify each account as an Asset(A), Liability(L), or…

A: Assets accounts are those accounts that are related to resources of the organisation. Liability…

Q: Unearned revenues are a. Earned and recorded as liabilities before they are received. O b. Earned…

A: 12. Unearned revenue is the revenue that is received by the company but not yet earned by the…

Q: Under accrual basis of accounting, revenue is recognized when ______________ and expenses are…

A: Accrual basis of Accounting recognises when transactions take place. Under accrual basis accounting…

Q: Accounts payable would appear on the balance sheet as a(n) a. asset b. liability c. unearned…

A: Account payable is the account that represents the accounts from where purchases of inventory have…

Q: Accounts payable is a Select one: A. current liability B. current asset C. long-term liability D.…

A: Accounts payable are short term obligation which should be paid to the vendors or suppliers for the…

Q: Requirements:   A. Determine the total payment to unsecured creditors.  B. Determine the total net…

A: Liquidation means where the company decide to close out the operations , sell all the assets and…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Owner…

A: Owner’s equity: The claims of owners on a company’s resources, after the liabilities are paid off,…

Q: Advances from customers are classified as a(n) Select one: a. The answer does not exist b. revenue.…

A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…

Q: Which of the following describes the classification and normal balance of the unearned fees account?…

A: UNEARNED FEES :  IT IS A UNEARNED REVENUE ( CASH RECEIVED IN ADVANCE FOR PROVIDING GOODS AND…

Q: How is the valuation of cuIrent assets affected if the company follows IFRS? OValuation is based on…

A: SOLUTION- HISTORICAL COST  IS THE ORIGINAL OF AN ASSET , AS RECORDED IN AN ENTITY'S ACCOUNTING…

Q: 19. Which of the following criteria must De recorded for accounting purposes? The event must be an…

A: Solution 19: As per money measurement concept, a business should only record an accounting…

Q: Money received from customers for products to be delivered in the future is recorded as: C . revenue…

A: Cash received from the customers will be considered as an asset. Whereas a liability will be created…

Q: D) going concern?example  E) periodicity?example  F)Revenue recognition principle? Example…

A: The accounting principles seem to be the basic rules and procedures that businesses must adhere to…

Q: The following may be presented as current assets, except * A. Advances to shareholders, directors,…

A: Current assets: These include all the assets of the business that can be converted into cash within…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Insurance…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Which of the following items represent a deferral ?                                      A. Prepaid…

A: In accounting, deferral means to defer or delay recognizing certain revenues or expenses on the…

Q: Expenses paid and recorded as assets before they are used are called Select one: O a. Unearned…

A: Introduction: Balance sheet: In Balance sheet all Assets and liabilities are reported. It tells the…

Q: Accrued revenues would appear on the balance sheet as A. assets B. liabilities C. capital D.…

A: As per revenue recognition principle,  revenues earned during a period should be recognized as…

Q: are classified on the balance sheet as current or Select one: a. long-term. b. accrued. C. unearned.…

A: The balance shows the assets and liabilities of the business.

Q: Which Accounting Principles says personal expenses should be debited to Drawings Account. a.…

A: Lets understand all the accounting principal given in the option. As per the accounting entity…

Q: Consider the following accounts, and determine if the account is an asset (A), a liability (L), or…

A: Lets understand the basics. Asset accounts are accounts on which company has a rights. It include…

Q: IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the…

A: “Since you have asked multiple questions, we will solve the first ‘three’ questions for you. If you…

Q: Which of the following transactions will increase an asset and increase a liability?a. Purchasing…

A: An assets is a resource having an economic value that generates positive cash flow in the future for…

Q: IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the…

A: The financial statements are prepared by passing the journal entries, adjusting entries,…

Q: Choose the correct. How are anticipated administrative expenses reported on a statement of financial…

A: Statement of financial affairs:   Statement of financial affairs refers to a statement of assets and…

Q: Accounts receivable can be classified as _____ a. A Expense. b. A Liability. c. A Capital d. An…

A: The correct answer is  d. An asset

Q: Matching Type A. Intangible Assets B. Contra asset C. Allowance for doubtful Accounts D. Current…

A: Solution:- Accounting is the process of recording financial transactions along with classification ,…

Q: Return inward appearing in trial balance is deducted from Select one: a. Asset O b. Purchases c.…

A: Introduction: Trial balance: After posting all the balances to ledger accounts trial balance is…

Q: Which should be classified as a financial asset? a. Patent b. Trade Accounts Receivable c.…

A: Financial assets are also known as non-physical assets. It is because it is generated through a…

Q: 22. Unearned income is recorded by an entity that A. Pay money in advance before performance of…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: the unearned interest is credited in the adjusting entry, which of teh following will be affected?…

A: When Unearned Interest is credited, the following adjustment entry will be made: Account Titles…

Q: Which of the following is a connector account? O Retained Earnings O Prepaid Rent O Common Stock O…

A: Connector accounts are those accounts which connects or joins two particular financial statements.

Q: FASB suggest that revenues are considered to be earned: a. at the point of sale b. throughout the…

A: According to the FASB revenue is recognized on the accrual basis of accounting which shows that the…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is