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aev [14]
3 years ago
5

Under the accrual basis of accounting, many of the account balance in the ledger at the end of the accounting period are reporte

d in the financial statement without change. Some accounts require updating, though. When preparing financial statements, the economic life of the business is divided into time periods. The matching principle states that:___________.
1. A purchase made by a business is matched with the actual cost of the item
2. The accounting records and reports are matched with objective evidence
3. The transactions of a business are matched with the transactions of hs owner, creditors and other bussiness
4. The expenses incurred during a period are matched with the reverse that those expenses generated.
Business
1 answer:
Helen [10]3 years ago
4 0

Answer: 4. The expenses incurred during a period are matched with the revenues that those expenses generated.

Explanation:

The accrual basis of accounting works by matching accounting transactions to the period that they occur in. For instance, if revenue is sold in year 1 but the cash for it is only received in year 2, the revenue will be recorded for year 1.

The matching principle falls under the accrual basis and matches the expenses in a period to the revenue that the expenses generated in that same period. This is why the expenses in the income statement are only those that occurred in the current period and expenses for future periods are put in the balance sheet.

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A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended
hjlf

Answer:

$11,250

Explanation:

Deferred tax asset = Warranty expense in excess of deductible amount * Tax rate

Deferred tax asset = $25,000 * 25%

Deferred tax asset = $6,250

Deferred Tax liability = Depreciation in excess of financial statement amount * Tax rate

Deferred Tax liability = $70,000 * 25%

Deferred Tax liability = $17,500

Non-Current deferred tax liability = $17,500 - $6,250 = $11,250

Hence, Fieval should report $11,250 as the deferred income taxes in its 2021 balance sheet

4 0
2 years ago
Which of the following tasks would be completed by a radio announcer?
Usimov [2.4K]

Answer:

D

Explanation:

3 0
3 years ago
Read 2 more answers
The following information is from the annual financial statements of Nancy Company.
lakkis [162]

Answer:

5.79 times

Explanation:

The computation of the Accounts receivable turnover ratio  

= Credit sales ÷ average accounts receivable

where,  

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2

= ($46,400 + $49,700) ÷ 2

= $48,050

And, the net credit sale is $278,000

Now put these values to the above formula  

So, the answer would be equal to  

= $278,000 ÷ $48,050

= 5.79 times

5 0
3 years ago
At its simplest, acquisition management can be viewed as:
Goryan [66]

Answer:

The correct answer is letter "D": project management plus operations management.

Explanation:

Acquisition management refers to all the efforts a company makes to obtain the materials necessary for the operations process stage to take place. Labor, land, and equipment are the main factors that the company must acquire to make its project become true. Under that scenario, project management and <em>operations management </em>are the core of the <em>acquisition management</em>.

3 0
3 years ago
A stress test in finical marketing means:_____.
Brilliant_brown [7]

Answer:

C.

Explanation:

Stress tests are carried out to determine how financial systems would react in periods of extreme stress eg. financial or economic crisis.

Stress situations are simulated and the reaction of the financial system to the stress is measured. Based on the reactions of the financial system, steps are taken to further improve or strengthen the financial system.

The scenarios used in a stress test can be based on historical events (events that have already occurred) or hypothetical events.

8 0
3 years ago
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