Accountants divide the financial life of a business into man-made time periods due to the fact that of the time duration assumption


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The revenue recognition principle dictates that carriers recognize revenue in the accounting period before it is earned.
False(the revenue recognition principle dictates that companies recognize revenue in the accounting duration in which it is earned)
On June 30, a to press shop proves $1,000 of services to a customer to custom print restaurant menus. The client is sent a invoice on July 5 because that the quantity due. A inspect in the amount of $1,000 is obtained from the client on July 25. The print shop adheres to GAAP and also applies the revenue recognition principle. As soon as is the $1,000 sale considered to it is in earned?
June 30(Under GAAP making use of accrual basis audit and the revenue acknowledgment principle, service providers recognize revenue in the duration in which the is earned for a business company, earnings are considered to it is in earned at the moment the business is performed)
If a resource has to be consumed but a bill has actually not been obtained at the end of the audit period,
an adjusting entry should be make recognizing the expense(an cost should be videotaped in the duration that the source is consumed; therefore, one adjusting entry need to be prepared to recognize the expense and the corresponding liability.)
What is the impact on the financial statements if the adjusting entries because that prepaid costs are omitted?
Balance paper accounts space overstated and income statements accounts space understated(assets are overstated top top the balance sheet and also expenses room understated on the earnings statement)
False(Liabilities space overstated and revenues space understated before adjustment because that unearned revenues)
White Laundry agency purchases $6,500 worth of laundry offers of June 2 and also recorded the purchase as one asset. ~ above June 30, an inventory of the wash supplies suggested only $3,000 ~ above hand. That is the company"s very first period that operation. The adjusting entry that should be make by the firm on June 30 is

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