· Question 8 Which statement is correct?
· Question 9
Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting.
· Question 10 Accrued expenses are:
· Question 11
Cash received from customers $ 48,000 Accounts receivable 12,000 Cash paid for expenses 26,000 Accounts payable( related to expenses) 3,000 Prepaid rent for next period 7,000
If a resource has been consumed but a bill has not been received at the end of the accounting period, then:
· Question 12 Depreciation is the process of:
· Question 13
If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month ' s financial statements?
· Question 14
Why do generally accepted accounting principles require the application of the revenue recognition principle?