Which sentence is incorrect? Select one: a. Cash-basis accounting is not in accordance with generally accepted accounting principles. b. In the Accrual-Basis Accounting, expenses are recognized when incurred. c. In the Cash-Basis Accounting, Revenues recognized when cash is received. d. According to the GAAP in Accrual-Basis Accounting, companies recognize revenues when they record cash receipts for their services.

Q: Which of the following action shall explain the prudence concept in the most appropriate way?…

A: Prudence concept:- Amount of revenues recognised  and assets  should not be overestimated; Amount of…

Q: Which of the following statements is false? A balance sheet reports a company's cash balance at a…

A: Answer : A statement of retained earnings reports the amount of cash received from operating…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Basis of the accounting is defined as the methodology under which the expenses as well as the…

Q: According to generally accepted accounting principles, companies can choose to use either the cash…

A: According to generally accepted accounting principles, companies which are public are required to…

Q: Which of the following is true regarding unearned revenue? O When it is received, only the balance…

A: True regarding unearned revenue Let us understand accounting entry of unearned received and earned.…

Q: Which of the following statements is incorrect? A. The accrual method, which builds directly on the…

A: Following are the correct statement: 1. The accrual method, which builds directly on the revenue and…

Q: A system of accounting in which revenues are recognised when earned and expenses are recognised when…

A: Accrual system of accounting is the one in which expenses are recorded as and when they are incurred…

Q: Generally accepted accounting principles (GAPP) require companies to use Select one: a. None of the…

A: GAAP (Generally Accepted Accounting Principles) are the set of rules and guidelines as prescribed by…

Q: Which statement about accrual basis of accounting is incorrect? * A. Accrual accounting adheres to…

A: In accrual-based accounting, accounts on a balance sheet reflect liabilities and non-cash-based…

Q: Distinguish between cash-basis accounting and accrualbasisaccounting. Why is accrual-basis…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Which one of these statements about the accrual-basis of accounting is false? This basis is in…

A: Cash basis of accounting recognize the expenses or revenues when they are paid or received. Accrual…

Q: All of the following cash-basls accounting are false, excent does not match expenses incurred with…

A: Under cash basis accounting, the revenue earned and expenses incurred are recorded on the basis of…

Q: 1. Which statement about accrual basis of accounting is incorrect? A. Accrual accounting adheres to…

A: The accrual basis of accounting records the transaction when the transactions occurred, not at the…

Q: What is false about the matching principle? a. Incurred expenses should be matched with earned…

A: Matching principles are those principles which emphasize on matching of revenues of the business…

Q: The collection of cash from customers to which they owe to the entity from its past rendering of…

A: Lets understand the basics. When entity sale the goods on the credit then the buyer known as the…

Q: Which statement is incorrect? Under cash basis of accounting,

A: Cash basis of accounting:   It is a method of accounting adopted by companies where the transactions…

Q: Which is not undertaken by financial accounting? O a. Income statement O b. Customer data O C.…

A: Financial accounting deals with the economic transactions. In this, various statements are to be…

Q: Which of the following statements is true? If a company reports net income on its income statement,…

A: As per the accrual concept of accounting, revenue should be recognized in the books of accounts when…

Q: Which of the following sentences regarding the statement of cash flows is false?a. The statement of…

A: The cash flow statement summarizes the movement of cash and cash equivalents that come in and go out…

Q: List two types of transactions that would receive different accounting treatment using (a) strict…

A: (a) Under strict cash-basis accounting, incomes and expenses are recognized in the period it was…

Q: Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: In cash basis accounting, for tax purposes: a.Income is generally recognized when it is actually or…

A: There are two types or forms of accounting, that are used. These are cash basis accounting and…

Q: A change from cash basis to accrual basis should be reported A. Retroactively as a correction of…

A: Cash basis refers to the accounting of the transactions as and when the cash is received. Whereas…

Q: . Which statement is incorrect? Under cash basis of accounting, A. the matching principle is…

A: There are two types of accounting methods that are accrual and cash basis methods.

Q: which of the following is an accounting concept which serves as the basis for revenue and expense…

A: Accounting principles: Accounting principles are the conventions or rules that must be followed in…

Q: Which of the following is in accordance with generally accepted accounting principles? Select one:…

A: Generally accepted accounting principles improves the clarity,  consistency and communication of the…

Q: Which of the following statements are correct? I. A company's choice of accounting principles for…

A: Correct statement are as follows : I. A company's choice of accounting principles for financial…

Q: Which of the following is true of accrual basis accounting and cash basis accounting? a. Accrual…

A: Definition:   Accrual basis: Accrual basis is a method of accounting. In this method recording of…

Q: Which one of the following is not related to financial statements? a-Profit & Loss Account…

A: Financial statements are referred as the records of the business operations and financial…

Q: Which of the following is correct? Events that change a company's financial statements are…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: Under Philippine Financial Reporting Standards A. the cash basis of accounting is accepted. B.…

A: Philippines adopted the IFRS which are known as PFRS.

Q: What account will not be found in the financial statements of a company using accrual basis of…

A: The accrual basis of accounting is prepared on the matching principle and revenue recognition.…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Cash basis of accounting is a system in which all revenues and expenses in cash are recorded for…

Q: Under the accrual basis of accounting: cash must be received before revenue is recognized. events…

A: Accrual system of accounting recognises revenue whenever it becomes due.

Q: Due to which concept, accounting does not record non-financial transactions? O a. Going concern…

A: Accounting principles are those rules, regulations and guidelines which are used by the accountants…

Q: Which of these transactions would not be part of the cash flows from the operating activities…

A: Cash flows from operating activities include all the activities relating to the daily operations of…

Q: Which statement is incorrect? Under cash basis of accounting, * A. the matching principle is…

A: Accrual Basis Accounting means transactions are recorded at the time when it has taken place…

Q: COVID Company recognizes revenue in the period in which the account receivable is collected in cash,…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: Which of the following is true of accrual basis accounting and cash basis accounting? Accrual…

A: Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are…

Q: Under accrual accounting, revenue is recorded and reported only Group of answer choices A. when cash…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: Which sentence is incorrect? Select one: a. According to the GAAP in Accrual-Basis Accounting,…

A: As per cash basis of accounting, we should record the transaction only when corresponding cash is…

Q: Which is NOT an example of a type of event that is not currently recognized in the financial…

A: Lets understand the basics. There are certain events which are not affecting financial statement…

Q: Which of the following statements reflects an accurate comparison of cash-basis versus accrual-basis…

A: The cash-basis is a method under which only cash revenue and cash expenses are recorded.…

Q: . Multiple-Choice Question Under the accrual basis of accounting, revenues are reported in the…

A: Solution: Accrual basis of accounting refers to the revenue and expenses to be recognized in…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.