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 answer choices are true.

Question

Quizplus · Accepted Answer

All of the answer choices are true.

A) Revenues represent the inflow of economic resources (such as cash or accounts receivable) from operating activities that result in an increase in equity.

B) Expenses represent outflows of economic resources (such as cash or inventory) that are incurred in the process of generating revenues and result in a decrease in equity.

C) Recognizing revenues and expenses typically involves an entry in at least one income statement account (such as revenue or expense) and may also involve an entry in a balance sheet account (such as accounts receivable or prepaid expenses).

D) Adjusting entries are made at the end of an accounting period to update accounts for transactions or events that have not been recorded or have been recorded incorrectly. These entries almost always involve at least one income statement account (such as an expense or revenue account) and one balance sheet account (such as a prepaid expense or accrued liability).

Which of the Following Is/are True