4. Match accounting assumption with most appropriate statement.

A.	Business Entity	F. Consistency
B.	Materiality	G. Transaction Approach
C.	Time Period	H. Revenue Recognition
D. E.	Expense Recognition Historical Cost	I. Going Concern J. Full Disclosure

Insert the applicable letter below

	i.	All significant relevant information is reported.
	ii.	Land and buildings are purchased for $885,000. The current value of the land is $1,000,000. Which concept is applied to record the correct amount?
	iii.	Financial statements are prepared to report quarterly and annual earnings.
	iv.	Target Corp routinely sends emails announcing sales for preferred customers and does not record a sale until a customer makes a purchase.
	v.	Online retailer Amazon, Inc. is financially sound and will continue in business indefinitely.
	vi.	Costs incurred to provide a service or produce a product must be reported in the same period the revenue is recognized.
	vii.	Money Magazine: subscription fees collected in advance are recorded as unearned subscription income and later recognized when earned.
	viii.	The company uses the same accounting principle from period to period.

_____5. The following data relate to Leslie Company for the year ended December 31, 2018. The company uses the accrual basis. (Show work for partial credit)

Sales on credit	$444,000
Cost of inventory sold on credit	252,000
Collections from customers	352,000
Purchase of inventory on credit	190,000
Payment for purchases	225,000
Selling expenses (accrual basis)	62,000
Payment for selling expenses	45,000

i. Compute net income using accrual basis and select response below:

1. $82,000
2. $257,000
3. $22,000
4. $130,000

2. Compute net income using cash basis and insert here: _____________

Answer rating: 100% (QA)

1 All significaut relevant J Full dislouscere full disclouer piniples stat... View the full answer