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1) A company recording January consulting revenue on the January income statement, even though the customer paid in December, is an example of the: economic
1) A company recording January consulting revenue on the January income statement, even though the customer paid in December, is an example of the:
economic entity assumption.
expense recognition principle.
revenue recognition principle.
monetary unit assumption.
2) Buyer Co. purchases $3,800 worth of inventory from Seller Co. Seller pays the $100 in shipping charges for the order. Buyer should debit which account to record the $100 in shipping charges?
-Cash
-Freight-out.
-Buyer would not record the shipping charges. -Inventory.
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