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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.
Where would Cash paid for equipment be reported in the statement of cash flows?
expenses
How are the revenues and expenses reported on the income statement under the cash basis of accounting?
They are reported in the period in which cash is received or paid
When are prepaid expenses are reported on the income statement as expenses?
Prepaid expenses do not go on the income statement as they are classified as assets. They are amortized over the time period being paid for.Example: If you prepaid $600 dollars for 6 months rent. Then $100 dollars would be expensed each month and the remaining amount is reported on the the balance sheet.
Cash flows from interest received are reported in the statement of cash flows as part of?
Operating activities
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.
What statement reports Free cash flow?
Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.
Where is i reported in the financial statements?
Need more clarification: i = interest? (if expense: shown in income statement, under expenses. if revenue: shown in income statement, under revenues) i = investment? (is an asset, showin in the asset section of the balance sheet) i = income? ( shown in the income statement)
Can advertising expenses reported as inventory?
well no you cant
Should depreciation expenses be reported in retained earnings?
no
Why are salaries and purchases not reported on a statement of cash flows using the indirect method?
Under indirect method net income from normal income statement is adjusted for non cash items to arrive at cash flow from operating activities. As salaries and purchases are already accounted for in normal income that;s why it is not reported otherwise it will count twice.
Where does accounts receivable go on a multi step income statement?
Accounts receivables would be included in the balance sheet. The income statement reports revenues and expenses. Accounts receivables is an asset account and all the asset, liablities and equity accounts are reported on the balance sheet.
