Adjustments are necessary only if
a. the cash basis of accounting is used for all accounting periods.
b. cash receipts and payments occur before or after the point in time when revenues and expenses should be recognized under the accrual basis of accounting.
c. management reports its adjustments on the statement of cash flows.
d. the company reports revenue in the same period cash is collected.
b
You might also like to view...
Which of the following is a preventive control?
a. credit check before approving a sale on account b. bank reconciliation c. physical inventory count d. comparing the accounts receivable subsidiary ledger to the control account
Answer the following statements true (T) or false (F)
1) n the weighted-average inventory costing method, when using the periodic inventory system, a single weighted average cost per unit is computed for the entire period. 2) When using the weighted-average inventory costing method, the dollar amounts for ending inventory and cost of goods sold are the same for both the perpetual and periodic inventory costing methods. 3) An accounting information system collects, records, stores, and processes accounting data to produce information that is useful for decision makers. 4) The collection of time records for company employees is an accounting information system activity that is classified as a business transaction involving the sale of merchandise inventory.
The marketing mix is a set of tools that allows firms to manage the consumer decision-making process
Indicate whether the statement is true or false
Lee Manufacturing uses process costing. The following information is available for the current year: Number of units in beginning inventory 2,000 Number of units started in the current period 10,000 Number of units available in the current period 12,000 Number of units in ending inventory (1,600) Number of units completed in the current period 10,400 If Lee uses the FIFO method of process
costing, which units are assumed to be the first ones finished during the year? A) The 1,600 units in ending inventory B) The 10,000 units that were started in the current period C) The 1,000 units in beginning inventory D) The 12,000 units that were available in the current period