When revenue equals expenses, the result is :   A)Loss B)Profit C)Zero cash balance D)No profit no loss

Q: ____________________ is the income earned after other revenues are added and other expenses are…

A: For gross profit, Cost of goods sold is deducted from Sales Revenue. Income from operations means…

Q: If revenue exceeds expenses for the accounting period being measured, then we say the company…

A: net assets: Total assets - Total liabilities net loss: Expenses > Revenues net increase: Increase…

Q: When the payment is made to creditors, it would result in which among the following? a. decrease…

A: Creditors are the persons to whom the entity has to pay some due money.

Q: Which of the following is true of unearned revenue? It is a liability account that is increased when…

A: Unearned revenue is simply cash received in advance.   Advance cash is received when services have…

Q: Which of the following is true regarding unearned revenue? O When it is received, only the balance…

A: True regarding unearned revenue Let us understand accounting entry of unearned received and earned.…

Q: The increase in expenses and decrease in payables should be debited* O True O False

A: Expense accounts normally have debit balance and all payables normally have credit balance. For…

Q: By matching revenues and expenses in the same period in which they incur A. net income or loss will…

A: As per matching concept expenses or revenue and expenses should be recognized in the period in which…

Q: Please explain the meaning of the following statement, I don't understand. The income reports net…

A: Income: It is often defined as the amount that is generated by a business from performing its…

Q: Any transaction between a current account and another current account does not affect [A] profit…

A: Working capital: The measure which evaluates the ability of a company to pay off the short-term debt…

Q: Increases in assets and expenses are credited while decreases are debited. O True O False

A:

Q: Which one of the following statement is TRUE? a. Cash is non-current asset b. Outstanding expenses…

A: Current assets are all those assets that are realizable to cash within one year such as accounts…

Q: Which of the following doesn't correctly describe a journal entry which debits rent expense and…

A: The asset and expenses have the debit balance and liabilities and revenue have credit balance.

Q: Which situation indicates a net loss within the Income Statement section of the worksheet? a. Total…

A: In an income statement , credits refers to income and debits refers to expenses. Net loss occurs…

Q: Accounting for all possible losses and expecting no profit is as per O a. Revenue recognition…

A: Answer : Option (C ) conservatism Principle

Q: Which statement is incorrect? A. Deferred income-beginning

A: Prepaid Expenses -: Prepaid Expenses are forthcoming expenditures that have been reimbursed in…

Q: Net income and earnings are the same thing and are the bottom line of the income statement. True or…

A: Income statement is the summary of revenue and expenses of the company for a particular period. The…

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: A.] Prepare balance sheet and income statements in formal reports using the data given below. 1.…

A: Financial statements are those statements which are prepared at the end of accounting period for the…

Q: Net income equals: Select one: a. Assets minus liabilities. b. Cash receipts minus cash payments.…

A: There is a multistep income statement model to record the revenue and expenses. As per this…

Q: Which of the following is NOT a reason why cash flow may not equal net income? a. Capital…

A: The relationship of cash flow with net income is  Cash flow =net…

Q: Which of the following transactions violates the balance sheet equation? (check all that apply)…

A: Balance sheet is a financial statement which presents the balances of assets, liabilities and…

Q: The increase in expenses and decrease in payables should be debited O True O False

A: While recording any business transaction in accounting form we enterd this amountin two side one is…

Q: An accrued expense amounting rm18000 was not recorded when ascertaining the profit year. The effect…

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: There will be a when liability, capital, and revenue accounts decrease O a. neither debit nor credit…

A: Introduction: Nominal account rule: As per nominal account rule Debit all expenses and losses ,…

Q: Which of the following transactions violates the balance sheet equation? (check all that apply)…

A: Introduction: Accounting equation: Assets = liabilities + shareholders equity. Sum of both…

Q: Under accrual accounting: Group of answer choices a)Revenue cannot be recognized until cash is…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: An accrued expense can best be described as an amount Paid and currently matched with earnings…

A: Solution Concept Accrued expense Accrued expense means the expense that has already been incurred…

Q: pute the effects on revenue, expenses, total assets, total liabilities and equity. Write NE for no…

A: Step 1 Accounting equation is based on Double entry system which is  formula is Assets = Liabilities…

Q: 1.The income statement can be expressed as an equation: A.Income =Income-Expenses B.Revenue-Expenses…

A: Income Statement:   A financial statement which shows profitability of company over a period of time…

Q: Statement 1: Profit is any amount over and above that required to maintain the capital at the…

A: Profit: Amount of net income gained after deducting all dollar expenses from total revenue is…

Q: The calculation of Operating profit does not include the following item: a. Direct expenses O b.…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: An expense represents a liability a cost of doing business none of the above a withdrawal

A: Liability represents the amount which will be paid by the entity in future as a result of present or…

Q: Multiple choice: 1. Which of the following is incorrect regarding profit? A. Profit is measured only…

A: Profit is an excess of revenue over the expenditure and it can be measured by preparing the income…

Q: Expenses are the cost of providing goods and services and result in: A.increased assets or…

A: Expenses are the cost that involves the outflow of resources (assets), which means assets will be…

Q: If accrued liabilities payable have increased during a period a. expenses on an accrual basis are…

A: Meaning of Accrued Liabilities Payable  An accrued liability Payable is an expense that a business…

Q: Failing to accrue expenses that have not been paid in cash will cause a company to report O a.…

A: Solution: As per accrual basis of accounting, all expenses are recognized when incurred and all…

Q: Which of the following has a different effect on net profit than it does on cashflow? A.Cash sale…

A: Net Profit will be affected by revenues and expenses whether accrual or cash basis. On the other…

Q: Which statement is not true about accrual and deferral? A. A deferred income is an amount collected…

A: Accruals: Accruals are the revenues that are earned but not received, and expenses that are incurred…

Q: Which situation indicates loss on the income statement a. Total debits exceed total credits b.…

A: Income statement is a statement show the gross profit and net profit earned by comparing the sales…

Q: How a profit is determined a) under the cash basis of accounting and b) the accrual basis of…

A: a) Under cash basis of accounting revenues and expenses only includes where there is a cash exchange…

Q: hich of the following is FALSE regarding the financial statements? Depreciation expense, which is…

A: 1. Depreciation Expense - Depreciation Expense is the non-cash expense of the company. It is…

Q: sing the indirect method to calculate net cash provided by operating activities, a decrease in…

A: Introduction:- Under the indirect matter calculation of cash flow statements the following…

Q: Unearned revenue adjustments are needed when cash is received before ?revenue is earned False ( True

A: The deferred revenue is the amount received by the business entity from customers before providing…

Q: Which of the following accounts have a debit normal balance? Select one: a. Dividends Payable b.…

A: Ans.  b  Salaries expense

Q: Which is the most suitable method based on the concept that profit is the difference between the…

A: Owner equity means the amount which belongs to the owner of the business. It also refers to as…

Q: If accounts receivable have increased during the period revenues on an accrual basis are the same…

A: Accounts Receivables represents the amount outsiders owe to the company . Accounts receivables are…