EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Students have asked these similar questions
When opposed to cash-basis accounting, does accrual-basis accounting offer more meaningful information? If not, why not? Give an example to support your argument.
Which of the following is a limitation of the direct write-off method of accounting for uncollectibles?
a. The direct write-off method overstates assets on the balance sheet.
b. The direct write-off method does not match expenses against revenue very well.
c. The direct write-off method does not set up an allowance for uncollectibles.
d. All of the above
Which of the following is a limitation of the direct write-off method of accounting for uncollectible?
The direct write-off method overstates assets on the balance sheet.
The direct write-off method does not match expenses against revenue very well.
The direct write-off method does not set up an allowance for uncollectible.
All of the above
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Similar questions
- The modified accrual basis ______. Multiple select question. What solution is it below? (A) records receivables (B) is merely a "light" version of the accrual version is not equivalent to the cash basis (C) accrues expenditures when payable (D) does not recognize long-term assets and liabilitiesarrow_forwardWith respect to the concept of materiality, which of the following statements is correct?a. Materiality depends only on the dollar amount of an item relative to other items in the financial statements.b. Materiality depends on the nature of a transaction rather than the dollar amount of the transaction.c. Materiality is determined by reference to AICPA guidelines.d. Materiality is a matter of professional judgment.arrow_forwardWhich one of the following recognises the idea that assets and income should not be overstated while liabilities and expenses should not be understated :A. Matching principle,B. Accrual concept,C. Principle of prudence.D. Consistency concept.arrow_forward
- Which of the following is not a pervasive expense recognition principle? a. immediate recognition b. systematic and rational allocation c. cash payment d. association of cause and effectarrow_forwardWhich of the following items is NOT classified as a financial asset? a. promissory notes b. forward exchange contracts c. inventory d. accounts receivablearrow_forwardDoes Derecognition only apply to the balance sheet? If so, Why? Why are other statements not used? Explain please.arrow_forward
- Which of the following statements is not correct regarding combined statement of financial position errors and income statement errors? a. It does not affect net income. b. It results to misstatement of the statement of financial position. c. It can be classified as counterbalancing errors and non-counterbalancing errors. d. It affects both real and nominal accounts.arrow_forwardа. Define what is an off-balance sheet activity? Also provide an example of an off-balance sheet liability.arrow_forward8. The timing of income from services can often be controlled through the use of: a.U.S. GAAP accounting. b.The cash method of accounting. c.Service accounting. d.The accrual method of accounting. e.IFRS accounting. 9. The primary purpose of the imputed interest rules is to prevent income shifting via interest-free loans. True Falsearrow_forward
- 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.arrow_forward(a) Explain the difference between: Capital expenditure and revenue expenditure, giving an example of each. (b) Explain the difference between the receivables collection period and the payables payment period. Why is it generally preferable for the receivables collection period to be shorter than the payables payment period?arrow_forwardWhat is the difference between the cash basis and accrual basis of accounting as to the following: -Expenses, in general -Depreciation -Bad Debtsarrow_forward
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