While depreciation is an adjusting entry, it is not an accrued expense.Which of the following is not a typical example of an accrued expense?

While depreciation is an adjusting entry, it is not an accrued expense.

Which of the following is not a typical example of an accrued expense?

Interest

Taxes

Depreciation

Wages

The revenue recognition principle states that revenue is recognized in the accounting period in which the performance obligation is satisfied.

The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the

accrued revenues principle.

periodicity assumption.

expense recognition principle.

revenue recognition principle.

This statement is correct. The income statement is prepared on an accrual-basis and therefore contains items of revenue and expense which do not represent cash inflows or outflows.

In computing net cash provided by operating activities, certain non-cash items such as depreciation must be eliminated from net income.

False

True