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Which the accountant may spread the cost of a building

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Reference no: EM132789581

Problem 1. Which of the following transactions will not result in the recognition or dn expense?

a. A cash withdrawal by the owner. A cash withdrawal by the owner will not result in the recognition of an expense.

b. a deferred revenue.

b. Expiration of prepaid insurance.

C. Interest accrued on a bank loan.

d. Use of machinery during the period.

Problem 2. The accountant may spread the cost of a building over many years primarily because of the

a. fiscal year assumption.

b. going concern assumption.

C. periodicity assumption.

d. periodicity assumption and going concern assumption.

Reference no: EM132789581

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