Reporting Mechanics

Question 1

An accrued expense can be best described as an amount

Answer 1

Not paid and currently matched with earnings

The word accrued denotes both matching and lack of payment .

Accrued means matching

Question 2

The debit and credit analysis of a transaction normally tales place

Answer 2

before entry is recorded in the journal

Question 3

Adjusting entries are necessary to

Answer 3

properly match revenues and expenses

Question 4

Difference between Gains and Revenue

Answer 4

Gain are from non core activities and revenues are from day to day businesses

Question 5

In classifying the elements of financial statement the primary distinction between revenues and gains is

Answer 5

the nature of the activity that gives rise to the transaction