3. True or false: The accrual basis means that income and expenses are recorded in the periods to which they relate, not necessarily when cash is received or paid.* a) True b) False 4. Which elements of the accounting equation are affected when the business earns income and is not paid...
3、cies(不足)Accrual Accounting(权责发生制) and its strengths4.1 Revenue recognition, matching principle and expense recognition(收入确认、配比原则和费用确认)4.2 Adjusting journal entries(调整会计分录)5.Expensing(费用化) versus capitalization (资产化)of expenditures6.Relations between income statement and...
As we know thataccountingis done on the basis of the Accrual concept. As per this concept, we not only record the transactions that are in cash only but also those which relate to the accounting year whether in cash or not. In order to determine the correctprofitand l...
Accrual of interest income depends on the characteristics of the debt instrument. For example, in case of non-amortizing loans and conventional bonds, interest income equals the product of principal amount and the periodic interest rate. But in case of amortizing loans and zero-coupon bonds, etc...
Income Statement (损益表)Income Statement (损益表）Revenues (销售收入）-Cost of goods sold (COGS) （产品销售成本）= Gross Profit （毛利润）-Expenses （费用）= Earnings Before Tax （税前收益）-Tax （所得税）= Net Income （净收益）The purpose of firm is to earn income for investors ...
It is made on an accrual basis, and it records the values irrespective of the fact the weather the business has received the money in their pocket or given the money out of their pocket. Conclusion The income summary is the summarized version of revenues earned by the business and the expen...
Expenses, Cost of Goods Sold, Earnings, and Net Income Cash accounting(收付实现制) and its inadequacies(不足) Accrual Accounting(权责发生制) and its strengths 4.1 Revenue recognition, matching principle and expense recognition(收入确认、配比原则和费用确认) 4.2 Adjusting journal entries(调整会计分录...
(不足) Accrual Accounting(权责发生制) and its strengths Revenue recognition, matching principle and expense recognition(收入确认、配比原则和费用确认) Adjusting journal entries(调整会计分录) 5. Expensing(费用化) versus capitalization (资产化)of expenditures 6. Relations between income statement and ...
AdjustingJournalEntriesUnderAccrualAccounting Underaccrualaccounting,somejournalentriesarenotexplicitlyrelatedtoatransaction.Wemaketheseentries,adjustingjournalentries,mostlikelyattheendofanaccountingperiod. Therearefourtypesofadjustingentries: Unearnedrevenue(客户预付款) ...
The entry to write off an account receivable under the allowance method will reduce net income. (a) True (b) False. A firm may have a significant amount of net income, as computed by accountants on the accrual basis, and yet have a severe decline in cash. a. True b....