23. Which of the following statements about the time period assumption is true? O a. Adjusting entries would not be necessary if a company's life were not divided into artificial time periods. ob Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods. C. A time period lasting one year is called an interim period. d none of the above. Clear my choice 24. The US GAAP requires businesses to use: @a the deferred basis of accounting the accrual basis of accounting the cash basis of accounting either the cash basis or the accrual basis of accounting C od The matching principle requires that a assets will be matched to the liabilities incurred to purchase them. b. gains and losses shall be offset. c. part of each dollar collected will be assumed to be a recovery of cost. d. revenues generated and expenses incurred in generating those revenues should be reported in the same statement Clear my choice The revenue recognition principle states that revenue should be recognized in the period when cash is received b. states that expense recognition is tied to revenue recognition. > c.requires that revenue be recognized in the accounting period when it is earned and realized (i.e., at the time of sale when goods are delivered). d requires that events which make a difference to financial statement users be disclosed 16. The entry to record the credit sales of $2,500 would be: 2,500 2,500 O a. Cash 2,500 Sales Revenue O b. Accounts Receivable 2,500 Sales Revenue Oc Sales Revenue 2,500 Accounts Receivable Od, Cash 2,500 Accounts Receivable 2,500 2,500 17. The entry to record $1,000 collected from customer on account would 1,000 1,000 . Cash 1,000 Account Receivable ob Cash 1,000 Sales Revenue oc Service Revenue 1,000 Accounts Receivable od Dividend 1,000 Cash 1,000 1,000