Cooke Final

Reports prepared on the accrual basis reflect what: what is earned

The matching principle requires that expenses be deducted from related revenue in the period in which the revenue occurs.

The Internal Revenue Service makes up the rules for preparation of financial reports. F- FASB

Carol, who has a seashell business, hires Tom to drive her truck, delivering shells to customers. During June, Tom works 50 hours, Carol pays him on July 5. This is an expense of which month, on an accrual basis operating report?

In a business (a retailer or a wholesaler), a sale occurs and is included in the sales figure on the financial report in the period in which:

Pearl, who owns a sporting goods store in Tuscaloosa, orders merchandise from Jean, a wholesaler in San Francisco. On the way across the country, the shipment is stolen. Nevertheless, Pearl has to pay Jean for the sporting goods. F it depends

Assume the same situation, except that the shipment is not stolen and Jean ships the goods on consignment to Pearl. Jean can include the value of the shipment in her sales when?

Archie Bunker owns an appliance repair business. He repairs a dishwasher for meat head. Archie includes the sale in his report when:

A) Meathead calls Archie and orders the repair service

B) Archie repairs the dishwasher

C) Meathead pays Archie for the repair

D) none of the above

For every expense, there was or will be a check written sometime.

On an income statement covering one year, prepared according to GAAP, a bad debt expense represents?

Sales allowance and sales return mean the same thing.

Cost of goods sold on an annual income statement should include which of the following:

A) the cost of merchandise (for resale) purchased during the year

B) beginning inventory plus purchases minus ending inventory

C) purchases plus ending inventory minus beginning inventory

D) a guess as to how much the merchandise that was sold probably cost the business

In a time of rising prices...