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
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Answer the following statements true (T) or false (F)
1) Smaller businesses invest in a periodic inventory system because of the ability to determine quantities of inventory on hand after each purchase and sale of merchandise inventory. 2) In a periodic inventory system, businesses must obtain a physical count of inventory to determine quantities on hand. 3) If a merchandiser uses the periodic inventory system, it is necessary to conduct a physical count of inventory to determine the quantity of inventory on hand. 4) In a periodic inventory system, purchases, purchase discounts, and purchase returns and allowances are recorded in the Merchandise Inventory account as and when they occur. 5) The Merchandise Inventory account is only used in a perpetual inventory system.
A sales return of $25 including tax of $2 would require a:
a. debit to sales returns and allowances for $25. b. credit to sales returns and allowances for $23. c. credit to sales returns and allowances for $25. d. debit to sales returns and allowances for $23.
Which of the following is NOT a common queuing situation?
A) grocery shoppers being served by checkout clerks B) commuters slowing or stopping at toll plazas to pay highway tolls C) machinery waiting to be repaired or maintained D) parcel delivery truck following its computer-generated route E) patients in a health clinic waiting to see one of several doctors
______________ have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently.
A. Freight forwarders B. Megacarriers C. Manufacturers' agents D. Industrial distributors E. Third-party logistics firms