None Cash and Sales would not be found on the same financial statement.True, because Cash is an asset and Sales is revenue and therefore reported on the Balance Sheetand Income Statement, respectively.False, because when added together the user can determine Owner's Equity.True, because there is no need to report the same thing twice.False, because Cash and Sales are both revenues and therefore both would be reported on theIncome Statement.

Balance sheet reports company's Assets, Liabilities, and Owner's equity. On the other hand, Income…

Answered: Cash and Sales would not be found on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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Which of the following is false? A. A liability is created when cash is received prior to delivery of the goods or services. 20. B. Revenue is recognized at the time of delivery of the goods or services if cash is received. C. Revenue is not recognized at the time of delivery of goods and services if cash is received after delivery of the goods and services. D. Collecting cash after delivery of a good or service does not create revenue on the income statement at the date of collection.
Which of the following sentences is Not correct: Monetary unit assumption states that only transaction data that can be expressed in terms of money are recorded. Bookkeeping is the same as recording. The use of correcting entry is an optional step. None of these.
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.
Identify the statement below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. The total amount debited need not equal the total amount credited for a particular transaction. The left side of a T-account is the debit side.
Which one of the following statements about revenue is not correct?A. Revenue can result in increases in accounts receivableB. Revenue can result in increases in liabilitiesC. Revenue is earned whenever cash is received from a customerD. Revenue is earned when a service is provided to a customer
Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash c.Temporary investments d.Accounts receivable
An adjusting entry would adjust revenue so it is reported when earned and not when cash is received. true false?
Which of the following is true of accrual basis accounting and cash basis accounting? a. Accrual accounting records revenue only when it is earned. b. Accrual accounting is not allowed under GAAP. c. Cash basis accounting records all transactions. d. All of the above are true.
Why are the income statement accounts closed but thebalance sheet accounts are not?
1. 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.
Which of the following would not overstate current-period net income?a. Capitalizing an expenditure that should be expensed.b. Failing to record a liability as an expense.c. Failing to record a check paying an item in Vouchers Payable.d. All of the above would overstate net income.
Which of the following statements, if any, is false? O Under the cash receipts method, income is not recognized until a payment is actually or constructively received. 2 Under the accrual method, income is generally recognized when (1) all events have occurred that fix the right to receive income and (2) the amount to be received can be determined with reasonable accuracy. If a seller receives a payment from a customer in the form of a laptop computer (instead of a more normal method such as a cash, check or credit card payment) the receipt of the computer is not taxable to the seller because the seller did not receive any cash (or cash equivalent) from the customer. A cash-basis seller does not have to recognize any income at the time of a sale to a customer if the seller sells on its own credit to the customer (i.e., where the seller risks not getting paid by the customer). Vone of the above - they are all true statements

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