Under International Financial Reporting Standards (IFRS) the cash-basis of accounting requires companies to record transactions in the period in which the events occur.
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1. Under International Financial Reporting Standards (IFRS) the cash-basis of accounting requires companies to record transactions in the period in which the events occur.
a. True
b. False
2.
a. True
b. False
3. An adjusting entry always involves two
a. True
b. False
4. Adjusting entries are recorded in the general journal but are not posted to the accounts in the general ledger
a. True
b. False
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- A. Discuss briefly how transactions are accounted for events after the reporting period.B. How do you make adjustments for a non-counter balancing error and does it affect the present financial statements?C. In case the books of accounts are not yet closed what financial statements account/accounts must be adjusted? Why?Choose true or false for the following statements: 1. Under International Financial Reporting Standards (IFRS) the cash-basis of accounting requires companies to record transactions in the period in which the events occur. a. True b. False 2. Adjusting entries are not necessary if the trial balance debit and credit columns balances are equal a. True b. False 3. An adjusting entry always involves two statement of financial position accounts. a. True b. False 4. Adjusting entries are recorded in the general journal but are not posted to the accounts in the general ledger a. True b. FalseConsider the following transactions associated with accounts receivable and the allowance for uncollectible accounts.Required:For each transaction, indicate whether it would increase (I), decrease (D), or have no effect (NE) on the account totals. (Hint: Make sure the accounting equation, Assets = Liabilities + Stockholders’ Equity, remains in balance after each transaction.)
- The full "accounting cycle" culminates in closing the books and producing financial statements. Discuss the differences between Permanent "real" accounts and Temporary ¨nominal¨ accounts: What type of information is contained in nominal accounts, and what type of information is contained in real accounts? Which financial statement contains the information from nominal accounts and which contains the information from real accounts? Provide an example of real accounts and an example of nominal accounts.Use the following to answer questions 16 - 19 For each transaction indicate whether it should: A. increase, B. decrease, or C. no effect. Credit sales transaction cycle Assets Liabilities Stockholders' equity Revenues Expenses 16. Provide services on account 17. Estimate uncollectible accounts 18. Write off accounts as uncollectible 19. Collect on account previously written offWhat are Accrued expenses? Always recorded in cash-basis accounting Expenses from an earlier accounting period that remain unpaid in the current period Generally not due to be paid until a future period Unnecessary to record-the financial statements will be correct whether they are recorded or not Another name for accounts receivable
- What is the impact on the accounting equation when a payment of accountable payable is made? what is the impact on accounting equation when an account receivable is collected? what is the impact on the accounting equation when a sell occurs? what is the impact on the accounting equation when stock is issued, in exchange for assets? which of the following accounts is increased by a debit? which of the following camp do not increase with a debit entry? which of the following pairs increase with credit entries? which of the following pairs of accounts are impacted the same with debits and credits? which of the following count normally have a debit balance? what type of account is prepaid insurance?TB MC Qu. 02-148 (Static) Which of the following... Which of the following is not a step in the process to go from transactions and events to the financial statements? Multiple Choice Analyze each transaction and event using the accounting equation. Identify each transaction and event from source documents. Record relevant transactions and events in a journal. Post journal information to ledger accounts. Ensure the cash account balance is reduced to $0 at the end of each period. 21 of 26 Next.A company records cash received from clients in advance for legal services in Unearned Revenue. If the company fails to make the end-of-period adjusting entry to move the portion of revenue that has been earned to a revenue account, one effect will be.... ?
- Accounting 1010 Chapter2. provide the names of two (a) assets account. B liability accounts, C equity accounts. 2.what is the difference between a note payable and an account payable? Are debits or credits typically listed first in journal entries? Are the debits or the credit intended? should a transaction be recorded first in a journal or the ledger? If an incorrect amount is journalized and posted to the accounts, how the errors should be corrected? Identify the four financial statements of a business. What information is reported in a balance sheet? What information is reported in the income statement? Define, Asset, Liability, equity and net asset.Businesses using the allowance method for the recognition of uncollectible accounts expense commonly experience four accounting events: a. Recognition of uncollectible accounts expense through a year-end adjusting entry. b. Write-off of uncollectible accounts. c. Recognition of revenue on account. d. Collection of cash from accounts receivable. Required Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown here. Use the following coding scheme to record your answers: increase is +, decrease is –, leave the cell blank for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is entered as an example. Effect of Events on the Financial Statements Balance Sheet Income Statement Stockholders' Net Event Assets Liabilities Revenue Expense Cash Flow Equity Income 1. %3D + 2. 3. 4. +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.