The recognition principle states that

Assignment Help Financial Management

Reference no: EM131949691

1. The recognition principle states that:

costs should be recorded on the income statement whenever those costs can be reliably determined.

costs should be recorded when paid.

the costs of producing an item should be recorded when the sale of that item is recorded as revenue.

sales should be recorded when the payment for that sale is received.

sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined.

2. A firm has common stock of $8,600; paid-in capital surplus of $11,700; total liabilities of $12,900; current assets of $15,100; and fixed assets of $27,200. What is the amount of shareholders' equity?

a. $29,400

b. $42,300

c. $33,200

d. $20,300

Reference no: EM131949691

Questions Cloud

The real estate bubble and ensuing financial crisis : What were the main causes of the real estate bubble and the ensuing financial crisis?

Agency problems and corporate ownership : What are the implications of this trend for agency problems and corporate control?

Statement of cash flow-firm end-of-year cash balance : You have just been hired as a financial analyst for Basel Industries. What was the firm's end-of-year cash balance?

Total dollar measure of liquidity : Which of the following is a total dollar measure of liquidity? Which of the following is considered a profitability ratio?

The recognition principle states that : The recognition principle states that. What is the amount of shareholders' equity?

What was the company operating cash flow : Its interest expense was $83,077, and its depreciation and amortization expense was $63,222. What was the company’s operating cash flow?

The firm income tax liability and its after-tax income : What are the firm's income tax liability and its after-tax income?

What was the firm net capital spending : If the depreciation expense of the firm's 2015 income statement was $520,000, what was the firm's net capital spending in 2015?

What is time-weighted return for the period : What is your time-weighted return (in percent) for the period April 1 - November 30?

User Account

All Pages