Which of the following is/are true?
A)Revenues measure the inflow of net assets from operating activities.
B)Expenses measure the outflow of net assets consumed in the process of generating revenues.
C)Recognizing revenues and expenses always involves a simultaneous entry in an asset and/or liability account.
D)Adjusting entries almost always involve an entry in at least one income statement and one balance sheet account.
E)All of the above are true.

Question

Quizplus · Accepted Answer

A) Revenues reflect the inflow of net assets from a company's operating activities, such as sales of goods or services. 
B) Expenses reflect the outflow of net assets consumed in the process of generating revenues, such as the cost of goods sold or operating expenses. 
C) Recognizing revenues and expenses does not always involve a simultaneous entry in an asset and/or liability account. For example, expenses can be recognized through a decrease in assets or an increase in liabilities, while revenues can be recognized through an increase in assets or a decrease in liabilities. 
D) Adjusting entries usually involve an entry in at least one balance sheet account and one income statement account to adjust for timing differences or to bring accounts up to date. Therefore, all of the given statements are true.

Which of the Following Is/are True