Author: Anonymous

The time period assumption assumes that an organization’s activities may be divided into specific reporting time periods including all of the following except:

A company entered into a 2-month contract for $50,000 on April 1. It earned $25,000 of the contract services in April and billed the customer. The company should recognize the revenue when it receives the customer’s check.

Noncash investing and financing activities may be disclosed in:

The time period assumption assumes that an organization’s activities may be divided into specific reporting time periods including all of the following except:

At a given point in time, a business’s trial balance is a list of all of its general ledger accounts and their balances.

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

A business’s source documents:

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

Return on assets is useful in evaluating management, analyzing and forecasting profits, and planning activities.