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andriy [413]
3 years ago
7

Which of the following is true of accrual basis accounting and cash basis​ accounting? A. Cash basis accounting records all tran

sactions. B. Accrual accounting is not allowed under GAAP. C. Accrual accounting records revenue only when it is earned. D. All of the above are true.
Business
2 answers:
Fed [463]3 years ago
8 0

Answer: Option C is true about Accruals basis

Explanation:

Cash basis states that transactions are only recognized when cash is received and paid. Some of the short comings of the cash basis was it didn’t regard the period in which transactions occured, etc

Accrual basis states that revenue is recognized when earned and expenses when incurred and not when cash is received or paid.

Option 1 is wrong because cash basis only records cash transactions.

Option 2 is wrong because Accruals basis is recognized by GAAP

Vedmedyk [2.9K]3 years ago
7 0

Answer:

Option C; ACCRUAL ACCOUNTING RECORDS REVENUE ONLY WHEN IT IS EARNED.

Explanation:

The main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognized.

Accrual accounting means revenue and expenses are recognized and recorded when they occur, while cash basis accounting means revenue and expenses aren't documented until cash exchanges hands.

Accrual accounting method records revenue when a product or service is delivered to a customer with the expectation that money will be paid in the future.

In accrual accounting method, revenue is accounted for when it is earned. Therefore, the option that best suits the question is option C; ACCRUAL ACCOUNTING RECORDS REVENUE ONLY WHEN IT IS EARNED.

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Inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? a. n
vlabodo [156]

Answer:

The answer is stockholders' equity is overstated

Explanation:

When inventories are overstated it reduces the cost of sales because the excess inventory in accounting records means the ending inventory will be higher and cost of sales will be lower.

When ending inventory is overstated, total assets and retained earnings will be overstated. And when retained earnings is overstated, stockholders' equity is also overstated because retained earnings is a line item under stockholders' equity.

7 0
3 years ago
Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016Raw materials inventory $300,00
Dafna11 [192]

Answer:

$700,000

Explanation:

The computation of the total raw materials used is shown below:

= Beginning raw material inventory + purchase of raw material - ending raw material inventory

= $250,000 + $750,000 - $300,000

= $700,000

We simply added the purchase and deduct the ending inventory to the beginning inventory so that the raw material used could come

7 0
3 years ago
Technological improvements have made it possible to do a restaurant’s food cost percentage in about _____________ of the time it
EleoNora [17]

Answer: One-third

Explanation:

The impact of technology in our everyday life cannot be understated. Technology has made life easier by simplifying our work lives and personal lives. In the restaurant industry, technological terms such as artificial intelligence, mobile apps, smart devices etc are now common in the industry.

Technology helps in making work easier. This can be noticeable in knowing the food cost percentage of a restaurant. Through technology, the food cost percentage of a restaurant can now be known in one third of the time used before technology came into place.

3 0
3 years ago
Read 2 more answers
according to the text, superior performance within the strategic business unit (sbu) is sought by asking which major question?
EastWind [94]

in step with the text, superior overall performance in the strategic commercial enterprise unit (SBU) is sought with the aid of asking the main question is a functional supervisor.

The definition of a superior is a person who is better in diploma, rank, numbers, etc. than others. An example of a superior is the supervisor of an enterprise. advanced comes from the Latin phrase which means above and it literally way something that is above others in best or reputation.

Superior means better or greater in value. An instance of advanced users as an adjective is an advanced manager which means a supervisor whose abilities have been evaluated as fantastic. An instance of advanced users as an adjective is a superior grade of 100% on an exam. (printing) Set above the primary line of a kind. you use superior to explain someone or something that is better than different comparable humans or matters. Your superior in an agency that you work for is a person who has a higher rank than you. They do now not have a lot communique with their superiors.

Learn more about Superior here:

brainly.com/question/26348640

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3 0
1 year ago
__________aggregate customers' opinions related to products or services that they have purchased and then suggest them to others
Rudik [331]

Answer:

Recommendation websites

Explanation:

Recommendation websites aggregate customers' opinions related to products or services that they have purchased and then suggest them to others with the same interest.

These websites make use of customer data based on what they have purchased in the past (product or service) to present to them new/similar products.

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3 years ago
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