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The expense recognition (matching) principle does not aim to record expenses in the same accounting period as the revenue earned as a result of these expenses.

Identify the item below that would cause the trial balance to not balance.

Buckle Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

Reversing entries are optional.

A company borrows $125,000 from the Arctic Bank and receives the loan proceeds in cash. This represents a(n):

After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $4,000 debit balance. This result implies that Cleaver earned a net income of $4,000.

Buckle Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Financial statements can be prepared directly from the information in the adjusted trial balance.

The basic financial statements include all of the following except: