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QUESTION 18 At the end of the accounting period, an adjusting entry is made to...

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Accounting

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QUESTION 18 At the end of the accounting period, an adjusting entry is made to reflect revenues earned (performance obligations have been satisfied), but cash is not yet collected. This is required due to which method of accounting? a. Accrual basis method of accounting b. Full disclosure C Cash basis method of accounting d. Expense recognition e. Transaction approach QUESTION 19 Symonds Manufacturing has a December 31 year-end. Major flooding occurred on January 18 due to record snow and rainfall, which resulted in property damage and a significant loss of inventory. Financial statements will be issued on February 15. How should this loss be disclosed? a. Subsequent event that only needs to be disclosed and reported to investors with significant interests. Subsequent event that did not exist at the balance sheet reporting date and should be disclosed in the notes to the financial statements for the year just ended. It does not meet the definition of a subsequent event. It does not need to be disclosed. d. Subsequent event that could be anticipated and financial statements for the year just ended should be adjusted prior to issuance. e. Significant event that does not need to be reported

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