It is true that
A) profit is the excess in cash inflows from income over the cash outflows from expenses.
B) income is recognised when the economic benefits are certain and can be reliably measured.
C) whether a transaction is made with cash or credit has no effect on the profit of an entity.
D) income is only recognised when cash is received
Correct Answer:
Verified
Q10: A machine is purchased for $130 000.It
Q11: If a legitimate expense is not accrued
Q12: Which of these is not an example
Q13: Which of the following must exist before
Q14: Office supplies purchased in bulk are initially
Q16: A transaction recording income earned
A)leaves total assets
Q17: An accounting period that is one year
Q18: Equity is increased by
A)liabilities.
B)expenses.
C)income.
D)dividends.
Q19: A machine is purchased for $120 000.It
Q20: The income statement
A)presents the income and expenses
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