KUIS 1

Transactions recorded in the periods in which the events occur

Companies recognize revenues when they perform services (rather than when they receive cash).

Expenses recognized when cash is paid

Expenses are recognized when incurred (rather than when paid).

Events that change a company’s financial statements are recorded in the periods in which the events occur.

Revenue is recognized in the period in which the performance obligation is satisfied.

The accrual basis of accounting is in accord with generally accepted accounting principles

Revenue is recorded only when cash is received, and expenses are recorded only when cash is paid

expenses are recognized in the period in which they are incurred.

revenues are recorded in the period in which services are performed.

balance sheet and income statement accounts have correct balances at the end of an accounting period.

all of the above

Accrual and Cash

Perpetual and Periodic

Accrual and periodic

Defferal and accrual

Prepaid expenses and Accrued Expenses

Prepaid expenses and Accrued Revenues

Prepaid expenses and Unearned Revenues

Prepaid expenses and Interest Revenue

Prepaid Expenses and Unearned Revenues

Accrued Expenses anda Accrued Revenues

Prepaid Expenses and Accrued Revenues

Accrued Expenses anda Unearned Revenues

Prepaid expenses recorded in asset accounts have been used

insurance, supplies, advertising, rent, depreciation

assets overstated, expenses understated

unearned revenues recorded in liability accounts are now recognized as revenue for services performed

Temporary Account

Permanent Account

All Revenue and All Expense

Multiple-column form used in preparing financial statements.

not a permanent accounting record

Use of worksheet is not optional

Use of worksheet is not mandatory

net income

net loss

owners drawing

assets