Please answer in all option Cash and Sales would not be found on the same financial statement.True, because Cash is an asset and Sales is revenue and therefore reported on the Balance Sheetand Income Statement, respectively.False, because when added together the user can determine Owner's Equity.True, because there is no need to report the same thing twice.False, because Cash and Sales are both revenues and therefore both would be reported on theIncome Statement.

The balance sheet and the income statement have different functions in financial accounting when it…

Answered: Cash and Sales would not be found on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which of the following sentences is Not correct: Monetary unit assumption states that only transaction data that can be expressed in terms of money are recorded. Bookkeeping is the same as recording. The use of correcting entry is an optional step. None of these.
If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an application of the: Select one: O a. None of the answers are correct O b. revenue recognition principle. O c. cost constraint. O d. matching principle. e. full disclosure principle.
Which statement is correct regarding IFRS? a. IFRS reverses the rules of debits and credits, that is, debits are on the right and credits are on the left. b. IFRS uses the same process for recording transactions as GAAP. c. The chart of accounts under IFRS is different because revenues follow assets. d. None of the above statements are correct.
Identify the statement below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. The total amount debited need not equal the total amount credited for a particular transaction. The left side of a T-account is the debit side.
Which one of the following statements about revenue is not correct?A. Revenue can result in increases in accounts receivableB. Revenue can result in increases in liabilitiesC. Revenue is earned whenever cash is received from a customerD. Revenue is earned when a service is provided to a customer
Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash c.Temporary investments d.Accounts receivable
An adjusting entry would adjust revenue so it is reported when earned and not when cash is received. true false?
Which of the following would not overstate current-period net income?a. Capitalizing an expenditure that should be expensed.b. Failing to record a liability as an expense.c. Failing to record a check paying an item in Vouchers Payable.d. All of the above would overstate net income.
Which of the following statements, if any, is false? O Under the cash receipts method, income is not recognized until a payment is actually or constructively received. 2 Under the accrual method, income is generally recognized when (1) all events have occurred that fix the right to receive income and (2) the amount to be received can be determined with reasonable accuracy. If a seller receives a payment from a customer in the form of a laptop computer (instead of a more normal method such as a cash, check or credit card payment) the receipt of the computer is not taxable to the seller because the seller did not receive any cash (or cash equivalent) from the customer. A cash-basis seller does not have to recognize any income at the time of a sale to a customer if the seller sells on its own credit to the customer (i.e., where the seller risks not getting paid by the customer). Vone of the above - they are all true statements
1. Which statement is correct regarding IFRS?(a) IFRS reverses the rules of debits and credits, that is,debits are on the right and credits are on the left.(b) IFRS uses the same process for recording transactions as GAAP.(c) The chart of accounts under IFRS is different because revenues follow assets.(d) None of the above statements are correct.
Why are the income statement accounts closed but thebalance sheet accounts are not?
How many of the following statements regarding the Revenue Recognition and Matching Principles are true? According to the Revenue Recognition Principle, a company should not record the revenue from a transaction until it is actually received in cash. If payment is received at the time a service is provided there is no difference between how cash and accrual accounting record the transaction. The Matching Principle requires that expenses be matched to the period in which they help to produce revenue. Group of answer choices A. None B. One C. Two D. Three

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