You are watching: Which of the following is in accordance with generally accepted accounting principles?
The generally accepted accountancy principle i beg your pardon dictates the revenue be recognized in the accounting duration in i beg your pardon the performance duty is to solve is thea. Accrued profits principle.b. Revenue acknowledgment principle.c. Periodicity assumption.d. Price recognition principle.
The cash communication of accountancy is in accordance with normally accepted accounting principles.a.Falseb.True
Which one of these statements around the accrual-basis of audit is false?a.This communication is in accord with typically accepted audit principles.b.Companies record occasions that readjust a company"s jae won statements in the durations in i m sorry the occasions occur.c.Companies record revenue only once they get cash, and record expense only when they pay out cash.d.Companies acknowledge revenue in the duration in i m sorry the performance responsibility is satisfied.
c.Companies record revenue only as soon as they receive cash, and record price only as soon as they pay out cash.
Which explain is correct?a.The use of the cash basis of accounting violates both the revenue recognition and also expense recognition principles.b.The cash communication of accounting is objective because no one have the right to be certain of the amount of revenue until the cash is received.c.As lengthy as monitoring is ethical, there space no troubles with utilizing the cash communication of accounting.d.As long as a agency consistently uses the cash-basis that accounting, usually accepted accounting principles allow its use.
a.The use of the cash basis of accounting violates both the revenue recognition and also expense recognition principles.
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Adjusting entries room made come ensure that:a.expenses are well-known in the period in i m sorry they room incurred.b.balance sheet and also income explain accounts have actually correct balances in ~ the end of an audit period.c.All of this answer options are correct.d.revenues are recorded in the duration in which the performance obligation is satisfied.