Which accounting principle requires that bad debts expense be recognized in the same period as the sale? A) Measurement principle B) Expense Recognition (Matching) principle C) Revenue Recognition principle D) Historical Cost principle

Which accounting principle requires that bad debts expense be recognized in the same period as the sale? A) Measurement principle B) Expense Recognition (Matching) principle C) Revenue Recognition principle D) Historical Cost principle

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 12MC: Which of the following principles matches expenses with associated revenues in the period in which...

See similar textbooks

Related questions

Q: Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $32,000. Its…

A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…

Q: Sunland Hardware Store completed the following merchandising transactions in the month of May. At…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: What is the severity of these losses in Group A? NARRBEGIN: CLAIMS DATA GROUP A AND B Data of claims…

A: Severity of losses refers to the average monetary amount or financial impact of individual losses or…

Q: Cash is A B C normally reported as the first item on a company's income statement usually a…

A: Cash is the physical money, such as coins and paper bills, that we use to make everyday purchases…

Q: Finch Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens…

A: Meaning:-Joint Cost are shared costs incurred during a manufacturing process where multiple products…

Q: Jordan took a business trip from New York to Denver. She spent two days in travel, conducted…

A: Total deductible expenses are the total expenses that can be subtracted from a taxpayer's gross…

Q: Required information [The following information applies to the questions displayed below.] Wolverine…

A: The income statement is prepared to record the revenue and expenses for the period. The net income…

Q: t factors or criteria doe

A: Several elements and criteria should be examined when deciding on the best cost allocation strategy…

Q: On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke…

A: A journal entry is a financial record kept by a company or individual to record a specific financial…

Q: Stuart Company Balance Sheet As of January 24, 2022 (amounts in thousands) Cash 8,400 Accounts…

A: Financial Statements:Financial Statements show the financial position of a company, The steps to…

Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries the Los…

A: The indirect costs comprise the costs that are not related directly to the production. The cost are…

Q: Patricia finances a $49,100 car with annual payments at a 3.10% interest rate over 8 years, at which…

A: Annuity means where regular payment is made at the end of regular period. When loan is taken , we…

Q: Required Information [The following information applies to the questions displayed below.] Wolverine…

A: Income statement is a financial statement that records all the income and expenses of the business…

Q: Bramble corporation began operations in 2025 and reported pretax financial income of $226,000 for…

A: Deferred tax liability is a future tax obligation. It is created when a tax obligation is owed by an…

Q: These items are taken from the financial statements of Acme Manufacturing Company at December 31,…

A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…

Q: Sheridan Company has gathered the following information. Units in beginning work in process Units…

A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…

Q: Maxwell Corporation has the following inventory information at the end of the year: Multiple Choice…

A: The ending inventory comprises the units that remain unsold at the end of the accounting period. The…

Q: Lionel is an unmarried law student at State University Law School, a qualified educational…

A: The deduction for interest on higher educations loans is provided only to certain tax payers who are…

Q: WBE enterprises for the 2021 and 2022 financial years. If all purchases are on credit, calculate the…

A: The ratio analysis helps to analyze the Financial statements of the business on the basis of the…

Q: Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $225,000…

A: A partnership is an agreement between two or more partners where partners agree to work together for…

Q: When a change in anticipated tax occurs because of personal circumstances, when should an employee…

A: W-4 form is a document used for the taxation purpose which is filled out by an employee and…

Q: Q2 Circle whether the account is reported on the Income Statement (IS), the Balance Sheet (BS), or…

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

Q: Assume that more than one product is being sold in each of the four following case situations: (Loss…

A: Contribution margin is the amount of money earned by the entity after deducting the variable costs…

Q: Prepare journal entries to record the following transactions relating to long-term bonds of…

A: In any company's records, a journal entry serves as a record of a commercial transaction. Every…

Q: Oriole Horticulture provides and maintains live plants in office buildings. The company's 854…

A: Contribution is the excess revenue after absorption of variable cost. After deducting fixed cost…

Q: Required information [The following information applies to the questions displayed below] Astro…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Smarty Partners projected sales and production in units for the coming year as follows: April May…

A: The account receivables represent the amount due from customers. The account receivables has normal…

Q: Rasheed works for Company A, earning $421,000 in salary during 2023. Assuming he is single and has…

A: Social security tax: Employee's pension and benefit for disability are secured through the social…

Q: Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and…

A: Net operating income is the difference between contribution margin and fixed costs. Contribution…

Q: Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Ivanhoe Corporation Balance Sheet…

A: For investors and other stakeholders looking to learn more about an organization's financial…

Q: A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end…

A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…

Q: Cash Beginning inventory Common stock Retained earnings Wall S Shop $19,300 18, 245 (205 units @…

A: The gross profit is calculated as net sales less cost of goods sold. The cost of goods sold includes…

Q: REI sells snowboards. Assume the following information relates to REI's purchases of snowboards…

A: FIFO (First-In, First-Out) method: This inventory accounting method assumes that the first items…

Q: Nelcro Company's Electrical Division produces a high-quality transformer. Sales and cost data on the…

A: A transfer price is the price at which goods or services are transferred from one division or…

Q: On September 1, Torres Company purchased $2,850 of supplies on account and debited Supplies Expense,…

A: Income statement is one of the financial statements that shows profitability, total revenue and…

Q: The following data (and annotations) are for Joyner Company's processing department work-in-process…

A: When producing large quantities of identical goods, where it is impossible to distinguish between…

Q: Use the above data to prepare the operating cash flow section of Practel's consolidated statement of…

A: The indirect method of a cash flow statement is a way to present data that shows how much money a…

Q: Buchanan Corporation issues $500,000 of 11% bonds that are due in 10 years and pay interest…

A: The issue price of the bonds is the initial selling price or the amount at which a company or entity…

Q: family-owned business operating out of Bozeman, Montana. For its services, the company has always…

A: First stage allocation is based on % use of activities by each cost pool of total costs. Activity…

Q: At the end of the prior year ending on December 31, Year 1, O'Connor Company's records reflected the…

A: Depreciation expense is the one which is reported in the books in order to charge the depreciation…

Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For…

A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…

Q: chases: 1 3 8 15 27 300 units at $3.50 500 units at $4.50 100 units at $5.00 100 units at $5.50 100…

A: In FIFO method, the goods purchased first are sold first. The first in first out method is applied…

Q: ll-Star Automotive Company experienced the following accounting events during Year 3: Performed…

A: Statement of cash flows is One Of financial statement which is used by stakeholders like investors…

Q: Whitman Company has just completed its first year of operations. The company's absorption costing…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: The Stancil Corporation provided the following current information: Proceeds from long-term…

A: Cash flow is the amount of cash and cash equivalents which is paid or received during the period.…

Q: Required information SB Exercise 4B-3 through Exercise 4B-4 (Algo) The Ferre Publishing Company has…

A: The various methods to allocate the costs among different departments are direct, step and…

Q: Which of these techniques would be appropriate for obtaining evidence about existence?

A: All the data that the auditor uses to draw the findings that form the basis of the audit opinion is…

Q: Washington Accounting, Inc. has the following information on the company's utility cost for the…

A: Total cost means the total amount of money incurred by the entity on the making of goods. It…

Q: [The following information applies to the questions displayed below] A company reports the following…

A: The cost of goods sold includes the cost of goods that are sold during the period. The ending…

Q: The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 42,…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Question

Which accounting principle requires that bad debts expense be recognized in the same period as the sale?

A) Measurement principle

B) Expense Recognition (Matching) principle

C) Revenue Recognition principle

D) Historical Cost principle

Please answer ASAP, I will upvote

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to the question:

VIEW

Step 2: Accounting principle requires that bad debts expense be recognized in the same period as the sale:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Question: Which accounting principle states that revenue should be recognized when it is earned and expenses when they are incurred? a. Matching principle b. Revenue recognition principle c. Conservatism principle d. Time period principle
Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle v Information has predictive and confirmatory value. T. Relevance characteristic 8. Consistency characteristic
Which accounting concept is applied when an entry is made for provision for bad debts? A. Going- concern B. Materiality C. Accruel D. Historic cost
Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated? Group of answer choices 1.revenue recognition principle 2.expense recognition (matching) principle 3.cost principle 4.full disclosure principle
Which accounting concept is applied when an entry is made for bad debts? A. Going-concern B. Materiality C. Accruel D. Historic cost
The practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.
A seller recognizes the amount of returns from right to return sales as a/an ________. Group of answer choices expense revenue asset liability
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business…
Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. A once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle " The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle Information has predictive and confirmatory value. f. Relevance characteristic 8. Consistency characteristic
QUESTION 49 Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. V Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle d. Entity assumed to have a long life Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle f. Information has predictive and confirmatory value. Relevance characteristic 8. Consistency characteristic
Which of the following is not a pervasive expense recognition principle? a. immediate recognition b. systematic and rational allocation c. cash payment d. association of cause and effect