(c) The monetary unit assumption enables accounting to measure employee morale. C) The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond. Which of the following statements is correct regarding the provision for income taxes in the financial statements of a sole proprietorship? C) A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate. Which one of the following is correct? A) The account could be a liability account. Which of the following statements regarding the time-period concept is NOT correct? A) The income statement reflects the position of a firm as of a single point in time. Which of the following statements concerning accrual-basis accounting ... Option c. Accrual-basis accounting recognizes expenses when they are paid is correct. B. The official accounting period is called fiscal year, but financial statements (i.e. B. Course Hero is not sponsored or endorsed by any college or university. True or False: The requirement to provide financial accounting information is driven by the need for outside stakeholders (primarily … A Each job is distinguishable from the other jobs B Identical units are... A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. A. The sales budget is the starting point in preparing the master budget. A cash basis of accounting would be appropriate for an accountant working on their own. The lessor depreciates the leased asset under a finance lease. The internal users of accounting information include management, owners and creditors. The concept of materiality recognizes that some matters are important for fair presentation of financial statements in conformity with GAAP, while other matters are not important. a. B) During the period, a journal entry was recorded that included a credit to the account for $800. Accounting standards that are not truly... 1. B) The real risk-free rate should increase if people expect inflation to increase. 3. Question: Which Of The Following Statements Is NOT Correct About Depreciation Accounting? (b) The economic entity assumption states that there should be a particular unit of accountability. 3. The sales budget is constructed by multiplying the expected sales in units by the sales price. Which of the following items are part of a business's set of financial statements? A) ... A change in method of accounting for depreciation should cause an adjustment to current year's depreciation expense and a cumulative effect for the effect of the change on prior year's earnings. A note payable due in 2 years. Reliability and relevance are complementary (congruent) objectives in designing an accounting system. b. Materiality is affected by an item’s relative size and/or importance. Which of the following cost flow assumptions is used for inventory when an entity builds townhouses? They typically use financial and nonfinancial data aggregated at a high level.c. Which of the following statements is (are) correct regarding the Owner, Capital account? A. A) The income statement reflects the position of a firm as of a single point in time. whether to hold or sell investments in stocks. (No) The statement of cash flows reflects cash flows from continuing operations, but it … Check your answers to the above activity. Which of the following statements is not correct about materiality? Which of the following accounting equation is correct? (Check all that apply.) Wrong! Which of the following statements is correct? Select one: 1. The net income is equal to zero at the accounting break-even point. C. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period. A. At the end of this topic, you will be able to: Determine the different branches of accounting, Determine the purpose of the different branches of accounting, Matching: Match column A with their corresponding information, This time, try to assess yourself on how familiar you are about cash and accrual. A. Accounting for costs of incentive programs for frequent customer purchases involves: When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless. II. C)A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate. B)Prior statements should be restated for changes in accounting estimates. A) The account could be a liability account. Total surplus is the sum of consumer and producer surplus. B) Prior statements should be restated for changes in accounting estimates. A. Cumulative-effect adjustments should be reported as separate items on the financial statements pertaining to … Which of the following statements is CORRECT? B. (a) Basic assumptions are the same as accounting principles. 1. Which of the following statements is CORRECT? Increases to cash are shown on the right side of the account. C)A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate. D) All of the other answers provide a correct statement. An accrual basis of accounting would be appropriate for a solicitor with one part-time secretary. Which of the following statements about financial and managerial accounting is correct? 3. Which one of the following statements related to an income statement is correct under the accrual method of accounting? Or university not revenue estimated useful life for a solicitor with one part-time secretary products! 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