British Columbia Institute of Technology FMGT 1100 - Accounting 1 books, while the A company maintains the asset account Cash in and reciprocal account that is a) a contre-asset account b) a liability account c) also an asset account d) an owner's equity account 14) Bank errors a) occur because of time lags. b) must be corrected by debits. c) must be corrected by the bank. d) are corrected by making an adjusting entry on the depositor's books. 14) The collection period ratio is a measure of the company's a) liquidity. b) solvency. c) efficiency. d) profitability 15) Which of the following does not belong on a single-step income statement? a) net sales b) salaries expense c) gross profit d) rent revenue sor of accounts an mportant fact related to accrual accounting is that: a) Adjusting entries are not reg Hevent is recorded when cash received ) Bepenses are recorded when incurred. is recorded when Gash is received and expenses are recorded when incurred. he concept that requires that accountants record depreciation expense on equip a) Historical cost measurement method b) Time period concept c) Revenue recognition principle d) Matchingconcept The concept that assists accountants in determine how often to prepare financiare a) Historical cost measurement method b) Time-period concept c) Revenue recognition principle d) Matching concept Page 2