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What presents the total revenues and expenses of a company for a given period?
SuzanneMichalski
Income Statement
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∙ 11y ago
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By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
Net income will result during a time period when?
revenues exceed expenses.
How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses?
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be better to instead estimate an allowance for uncollectible credit accounts. That way the revenues and expenses are affected in each period and the sales numbers will represent the business' sales more accurately; provided the percentage is watched and adjusted as needed.
What occurs when expenses exceed revenues for a given accounting period?
Retained earnings are decreased.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
Net income will result during a time period when?
revenues exceed expenses.
What principal allocates expenses to revenues in the proper period?
Matching Principal
Is a financial statement that summarizes the revenues and expenses for a specific period of time?
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How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses?
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be better to instead estimate an allowance for uncollectible credit accounts. That way the revenues and expenses are affected in each period and the sales numbers will represent the business' sales more accurately; provided the percentage is watched and adjusted as needed.
What occurs when expenses exceed revenues for a given accounting period?
Retained earnings are decreased.
What are the five categories of adjusting entries?
deferred expenses, deferred revenues, accrued expenses, accrued revenues and estimated expensesAdjustments to the enterprise's accounts can only be made in the time period when the business terminates.
What is financial statement that summarizes the revenues and expenses for a specific period of time?
income statement
A net loss will result during a time period when?
When expenses exceed revenues a net loss occurs.
The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when?
revenues are earned and expenses are incurred
What are unearned revenues?
Unearned revenues -Advance payments for goods or services that a company must provide in a future accounting period
