Which of the following statements about accrual basis accounting is correct?
A. IFRS does not allow accrual basis accounting for external reporting of income.
B. The items reported on the income statement continue to have an impact beyond the current period, whereas the items reported on the balance sheet impact just the current period.
C. If a company uses accrual basis accounting, the company should not record revenue until payments are actually received.
D. If a company uses accrual basis accounting, the company should record expenses in the same period as the revenues they generate.
Answer: D
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Dylan Corporation issues for cash $2,000,000 of 8%, 15-year bonds, interest payable annually, at a time when themarket rate of interest is 9%. The straight-line method is adopted for the amortization of bond discount orpremium. Which of the following statements is true?
a. The amount of annual interest paid to bondholders remains the same over the life of the bonds. b. The amount of annual interest expense decreases as the bonds approach maturity. c. The amount of annual interest paid to bondholders increases over the 15-year life of the bonds. d. The carrying amount decreases from its amount at issuance date to $2,000,000 at maturity.
What percentage of your time spent communicating interpersonally is devoted to listening?
A) 45 B) 25 C) 80 D) 10
Which of the following is not a component of the income statement?
A) unusual gains and losses B) net income C) income taxes D) accumulated other comprehensive income
The Accumulated Depreciation account is ________
A) a record of the sum of all the depreciation expense recorded B) the price quoted to the buyer of a used asset C) an expense account D) the expense account used to expense the cost of an asset