What are the effects of the following types of transactions on the accounting equation? Also identify the financial statements that are affected. (Assume that the perpetual inventory system is used.) Acquisition of cash from the issue of common stock. Contribution of inventory by an owner of a company. Purchase of inventory with cash by a company. Sale of inventory for cash.

What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.  Explain the matching concept by incorporating the terms ‘recognized’, revenue recognition principle, and expense recognition principle.  Explain and provide two examples of quick assets

Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Porite's practice is an example of: Multiple Choice O Economic entity. The matching principle. Accrual accounting. Cash basis accounting.

The accounting assumption that states an owner of a business must keep the business checkbook separate from the personal checkbook is called? Monetary Unit Assumption Gong Concern Assumption Matching Principle Economic Entity Assumption

Which of the following is an example of Current Asset of a Merchandise Business? a. Interest expense b. Accounts receivable c. Salary and Wages paid by the business d. Accounts payable

What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports using ASPE.) a.Revenue is recorded in the accounting records when the goods are sold to a customer and reported on the statement of earnings when the cash payment is received from the customer. b.Revenue is recorded in the accounting records and reported on the statement of earnings when the cash is received from the customer. c.Revenue is recorded in the accounting records when the cash is received from a customer and reported on the statement of earnings when sold to the customer. d.Revenue is recorded in the accounting records and reported on the statement of earnings when goods are sold and delivered to a customer.

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?

Question: Which of the following is a fundamental accounting principle that states that businesses should only record transactions that can be expressed in monetary terms? A) Matching principle B) Materiality principle C) Monetary unit principle D) Conservatism principle

Identify the following questions as most likely to be asked by an internal (I) or an external (E) userof accounting information. Which inventory items are out of stock?

Explain accrual basis accounting, and when to recognize revenues and expenses and how it differs from cash accounting. Provide a detailed example of a business that may use cash accounting.