The accounting period assumption means that:Group of answer choicesthe cash approach is always used to measure profits.the activities of the owner are assumed to be separate from those of the business.the accrual approach is always used to measure profits.for reporting purposes the economic life of an entity is divided into arbitrary time periods.

The accounting period concept states that: Group of answer choices the business will remain in operation for the foreseeable future. the life of a business can be divided into artificial time periods. every business entity can be separately identified and accounted for. only those events that can be expressed in money may be included in the accounting records.

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Accrual basis of accounting is a system where:Question 5Answera.The receipts are recorded when cash is not received while expenditures are recorded only when cash is paidb.The receipts are recorded only when cash is received while expenditures are recorded only when cash is paidc.Revenue is recorded when there is commitment and expenditure recorded when services is received.d.Revenue recorded when earned and expenditures recorded when benefits are received

At year-end, companies that utilize accrual-based accounting systems complete the measurement process throughMultiple choice question.recording of adjusting entriesconversion to cash-basisthe preparation of an unadjusted trial balanceposting of non-cash transactions occurring during the year

Accrual basis accounting:Multiple ChoiceIncreases the comparability of financial statements from period to period.Is flawed because it gives complete information about cash flows.Recognizes revenues when received in cash.Recognizes expenses when paid in cash.Eliminates the need for adjusting entries at the end of each period.