Which of the Following Best Describes the Action Known as Balancing

question 101

Multiple Choice

Which of the following best describes the action known as balancing the ledgers?

• A)totaling the subsidiary account balances and cross checking against the main account balance
• B)making sure that the ending balance in Sales is equal to the ending balance in Accounts receivable
• C)identifying the differences between the cash balance in the ledger and the bank statement
• D)totaling the expense account balances and cross checking against total expenses shown on the income statement

Distinguish between installment sales contracts and the installment method of revenue recognition.

Understand the specific industry guidance on revenue recognition under GAAP and IFRS.

Analyze when to use completed-contract vs. percentage-of-completion methods for accounting in long-term construction projects.

Discuss differences in future cost estimate treatments in construction contracts under GAAP and IFRS.

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Definitions:

Demographic Shift

A change in the statistical characteristics of a population over time, such as age, race, or gender distribution.

Young-Old

Healthy, vigorous, financially secure older adults (generally, those aged 65 to 75) who are well integrated into the lives of their families and communities.

Street Crimes

Illegal activities that occur in public places, typically involving theft, violence, or vandalism.