To replace the retained earnings account
in some businesses
Question 10. Question :
The accrual basis of accounting:
Is generally accepted for external
reporting since it is more useful for most business decisions
Is flawed because it gives complete
information about cash flows
Recognizes revenues when received in
cash
Recognizes expenses when paid in cash
Eliminates the need for adjusting entries
at the end of each period
Question 11. Question :
On April 1, 2011, a company paid
the $1,350 premium on a three-year insurance policy with
benefits beginning on that date. What will be the insurance
expense on the annual income statement for the year ended
December 31, 2011?
Question 12. Question :
entries is to:
The main purpose of adjusting
Record external transactions and events