In the Excel,or Spreadsheet,approach to Recording Financial Transactions,an Advertising Expense

question 19

True/False

In the Excel,or spreadsheet,approach to recording financial transactions,an advertising expense paid in cash is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for how public companies prepare financial statements.

Lower of Cost

An accounting principle requiring that inventory be recorded at the lower of its original cost or current market value.

Matching

An accounting principle where expenses are recorded in the period they are incurred to generate revenues.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.