The accountant for Ronaldo Company makes the assumptions or performs the activities listed below. Tell which of the following concepts of accrual accounting most directly relates to each assumption

The accountant for Ronaldo Company makes the assumptions or performs

the activities listed below. Tell which of the following concepts of accrual

accounting most directly relates to each assumption or action: (a) periodicity,

(b) continuity, (c) matching rule, (d) revenue recognition, (e) deferral, and (f)

accrual.

1. In estimating the life of a building, assumes that the business will last

indefinitely

2. Records a sale when the customer is billed

3. Postpones the recognition of a one-year insurance policy as an expense by

initially recording the expenditure as an asset

4. Recognizes the usefulness of financial statements prepared on a monthly basis

even though they are based on estimates

5. Recognizes, by making an adjusting entry, wages expense that has been

incurred but not yet recorded

6. Prepares an income statement that shows the revenues earned and the

expenses incurred during the accounting period

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