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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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Emily included the following passage in her report: "Other mid-price restaurants in the Chicago area have achieved phenomenal su
Ratling [72]

Answer:

Change "achieved phenomenal success" to "improved customer satisfaction."

Explanation:

This is because it has to do with customers services and from an end customer’s point of view to evaluate current perspectives, emerging needs and preferences, and it's impact on business outcomes.

8 0
3 years ago
Read 2 more answers
Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial in
Sav [38]

Answer:

TRUE

Explanation:

Opportunity cost refers to those costs that can help us save more money. When we move from one investment to another, then the additional income from the other investment is called opportunity cost.

In this case, if Joe chooses Invest in a bank deposit in the place of Gold coins, he can enjoy 3% more return at the place of no profit and loss, so Joe had loss his 3% opportunity cost.

8 0
3 years ago
Swifty Corporation's allowance for uncollectible accounts was $187500 at the end of 2017 and $180500 at the end of 2016. For the
Nostrana [21]

Answer:

The amount Swifty debited to the appropriate account in 2017 to write off actual bad debts: $25,800

Explanation:

Allowance for uncollectible accounts at the end of 2017 = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - The amount of write off actual bad debts.

The amount of write off actual bad debts = Allowance for uncollectible accounts at the end of 2016 + Bad debt expense of 2017 - Allowance for uncollectible accounts at the end of 2017 = $180,500 + $32,800 - $187,500 = $25,800

5 0
3 years ago
Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes
OLEGan [10]

Answer:

the total manufacturing cost is $39,150

Explanation:

The computation of the total manufacturing cost assigned as follows:

Overhead costs is

= 115% of $10,100

= $11,615

Now the total manufacturing cost is  

= Direct materials cost + Direct labor costs + Overhead costs

= $17,435 + $10,100 + $11,615

= $39,150

Hence, the total manufacturing cost is $39,150

3 0
2 years ago
A company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increa
Sergio039 [100]

Answer:

a. $179000

Explanation:

The computation of the cash provided by operating activities is shown below:

Net Income $2,10,000    

Add : Depreciation expense $27,000    

Add : Loss on sale of equipment $2,000    

Add : Decrese in prepaid expenses $5,000    

Less : Decrease in accounts payable $6,000    

Less : Increse in accounts receivable $17,000    

Less :Increase in inventory $42,000    

Cash provided by operating activities $179,000

7 0
3 years ago
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