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Unlimited Reading Learn faster and smarter from top experts Unlimited Downloading Download to take your learnings offline and on the go You also get free access to Scribd! Instant access to millions of ebooks, audiobooks, magazines, podcasts and more. Read and listen offline with any device. Free access to premium services like Tuneln, Mubi and more. Discover More On Scribd What occurs when the cash flow occurs after either the expense is incurred or the revenue is earned?That's the matching principle in a nutshell. occur when the cash flow occurs after either the expense is incurred or the revenue is earned. Accruals are the opposite of prepayments.
Under which of the following circumstances would cash basis accounting report lower?Under which of the following circumstances would cash basis accounting report higher expenses than accrual basis accounting in the current accounting period? Explanation: Cash basis would report lower expenses since the expense was not paid.
When a company collects cash in advance from customers it records a liability called?Unearned revenue is usually disclosed as a current liability on a company's balance sheet. This changes if advance payments are made for services or goods due to be provided 12 months or more after the payment date. In such cases, the unearned revenue will appear as a long-term liability on the balance sheet.
How do adjusting entries for accrued expenses affect liabilities and expenses multiple choice question?How do adjusting entries for accrued expenses affect liabilities and expenses? Adjusting entries for accrued expenses can increase liabilities and increase expenses. ___ is defined as the "cost of borrowing money." In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______.
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