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sveta [45]
1 year ago
13

The two accounting principles that are critical to the adjusting process used in accrual accounting are:_______

Business
1 answer:
Sunny_sXe [5.5K]1 year ago
5 0

The matching principle and the revenue recognition principle are the two accounting principles that are critical to the adjusting process.

The revenue that should be recognized in the accounting period in which it is earned is stated by the revenue recognition principle. Efforts (expenses) can be matched with accomplishments (revenues) as stated by the matching principle.

Revenue recognition principle: It is a generally accepted accounting principle (GAAP) that stipulates how and when the recognition of revenue should be done. This principle is using accrual accounting requires in the revenues are recognized when realized and earned but not when cash is received.

The matching principle: It is also an accounting principle that records revenues and expenses. It needs the business records expenses alongside when revenues are earned.  They both fall within the same period of time for the clearest tracking ideally. Businesses must incur expenses to earn revenues as which is recognized by the particular principle.

Learn to know more about three steps in the accounting process on

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Interpersonal communication

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3 years ago
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const2013 [10]

Answer:

$315,198

Explanation:

WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.

WACC = 11.5%

Exit multiple = Total cash outflow / Total cash inflow

Exit multiple = $120,000 / 36,000 = 3.3x

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3 years ago
which would be considered liabilities? check all that apply.motorcycle loanown a housecar loancredit card billmortgage
Alex777 [14]

Credit cards would be considered liabilities.

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5 0
1 year ago
Which type of insurance product gives policyholders a fixed death benefit and a selection of investment alternatives?
Alex73 [517]

Answer:

b. variable life

Explanation:

Variable life insurance pays a premium in case the insured dies (that is a guaranteed benefit), but it also allows the beneficiary to invest a portion of the proceeds in different types of investments. These investments may include stocks, mutual funds, bonds, etc., that eventually grow and increase in value.

6 0
3 years ago
What are the paper bills and coins that a country actually circulates called?
AnnZ [28]
Apaper bills and coins circulated in a country are called CURRENCY. Please remember that currency is <span>a system of money in general use in a particular country. I hope this is useful. </span>
7 0
3 years ago
Read 2 more answers
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