Home » Accounting: Principles of Financial Accounting » Which of the following statements is incorrect? Which of the following statements is incorrect? 2. Question 2 Which of the following statements is incorrect? 1 / 1 point Revenues in a period are not necessarily the same as customer cash receipts in that period. Expenses of a period are not necessarily the same as cash payments in that period. When an asset is consumed in the operations of the business, an expense is incurred. Revenues are decreases in owners’ equity as a result of operations. Other Questions Of This Category Fibertech GmbH is a distributor of outdoors technical clothing. The company outsources the production of clothing to external manufacturers in Bangladesh and sells the clothing under its own…Reviewing the Income Statement (questions 18 – 20) Vertikal SA imports and distributes climbing gear. Its profit and loss account for the year x5 has the following items (amounts in €000): ·…Which of the following statements is correct?Compute the cash flow from operations in x4: (Note: Fibertech treats interest payments as a cash flow from operations.)Suppose a business had assets totaling €20,000 and liabilities totaling €17,000. What was its owners’ equity?Which of the following statements is correct?Understanding the difference between cash and profit (questions 4 – 5): The ABC Company recognizes credit sales of €100,000. The cost of the goods sold is €60,000. Answer the following two…For the remaining questions, please consider the following transactions that happened in The Dorchester Company Ltd. in 2015 (amounts in £000): · Credit sales amounted to 5,000 (nothing was…Understanding how accounts relate to each other (questions 10 – 13): The managers of Moreton, Inc. prepared the following summaries of their company's assets and liabilities (amounts are in €…For the remaining questions, please consider the following cash transactions that happened in the company Becker GmbH in 2015 (amounts in €000): · Collections from customers: 500 · Purchase of…An asset is classified as “current” if:Which of the following statements is correct?Irwin Company obtained a five-year, €100,000 bank loan at the end of year x0. The principal had to be repaid in equal installments every December 31st starting in x1. The yearly interest rate…The cash flow statement of Le Bernerhof SA showed, for year x2, CFO = €5,500 and CFI = -€10,200. The beginning and ending balances of the cash account in year x2’s balance sheet were €7,900…Tax expense