· 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 ?