What accounting concept justifies the usage of accruals

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Reference no: EM132995873

Problem 1: Revenue generally should be recognized

A) at the end of production.

B) at the time of cash collection.

C) when realized.

D) when realized or realizable and earned.

Problem 2: Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the

A) economic entity assumption.

B) relevance characteristic.

C) comparability characteristic.

D) neutrality characteristic.

Problem 3: Which of the following is a time when revenue may be recognized?( You can choose more than 1 option)

A) At time of sale

B) At receipt of cash

C) During production

Problem 4: What accounting concept justifies the usage of accruals and deferrals?

A) Going concern assumption

B) Materiality constraint

C) Consistency characteristic

D) Monetary unit assumption

Reference no: EM132995873

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