Accounts. Please explain with full explanation. a. do not reflect money amounts b. are not used by entities that manufacture products c. are records of increases and decreases in individual financial statement items d. are only used by large entities with many transactions
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Accounts. Please explain with full explanation.
a. do not reflect money amounts
b. are not used by entities that manufacture products
c. are records of increases and decreases in individual financial statement items
d. are only used by large entities with many transactions
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- Accounts: a) Are records of increases and decreases in individual financial statement items. b) Are only used by large entities with many transactions. c) Do not reflect money amounts. d) Are used only by entities that manufacture productsWhich of the following items will not be shown in the balance sheet of ahotel? A. customer loyalty value B. accounts payable C. Intangible assets D. accrued taxesThat a business may only report activities on financial statements that are specifically related tocompany operations, not those activities that affect the owner personally, is known as which of the following?A. separate entity conceptB. monetary measurement conceptC. going concern assumptionD. time period assumption
- What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changesThat a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumptionWhich one of the following accounts is unlikely to ever be seperately disclosed in the income statement? O A. Cost of sales O B. Bad debts O C. Interest on current bank account O D. Depreciation
- Accounting data does not consider off-balance sheet items, such as unused commitments of a firm. O True O FalseWhile objectives for financial reporting exist on an informal basis, no formal objectives have been adopted. One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows. It is a system of accounting for recording transactions, based on record and decreases in accounts so that debits equal credits. a. accounting information system O b. accrual basis of accounting Oc. single-entry accounting O d. double-entry accounting Total net income over the life of an entity is a. Lower under the cash basis than under the accrual basis O b. Higher under the cash basis than under the accrual basis O c. Not susceptible to measurement d. The same under the cash basis as under the accrual basisDue to which concept, accounting does not record non-financial transactions? a. Going concern concept b. Accrual concept O C. Money measurement concept o d. Cost concept
- Indicate using a (+), (-), or (0) whether each of the following events would probablycause accounts receivable (A/R), sales, and profits to increase, decrease, or be affected inan indeterminate manner: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.When preparing the statement of financial position of LBM Ltd, which line item does not fall under current assets? Select one: a. Dividends payable b. Trade and other receivables, which can be shown separately or as one amount, includes debtors less provision for credit losses, bills receivable and income arrears c. Inventories (this includes merchandise and consumables such as stationery, packing and cleaning materials) d. Prepayments