Under the Accrual Method of Accounting,the Two Tests to Determine

question 62

True/False

Under the accrual method of accounting,the two tests to determine when income must be reported and expenses deducted are the all-events test and the economic performance test.

Recognize the accounting treatment of inventories and revenue recognition under IFRS and GAAP.

Understand and calculate the components of an income statement, including sales revenue, cost of goods sold, gross profit, operating expenses, and net income.

Calculate net purchases and cost of goods purchased under a periodic inventory system.

Differentiate between GAAP and IFRS in classification and presentation of income statement items.