question 5 (5 points) revenues are reported when a contract is signed cash is received from the customer…

question 5 (5 points) revenues are reported when a contract is signed cash is received from the customer work is begun on the job work is completed on the job question 6 (5 points) cash dividends increase expenses decrease expenses increase cash decrease stockholders equity

question 5 (5 points) revenues are reported when a contract is signed cash is received from the customer work is begun on the job work is completed on the job question 6 (5 points) cash dividends increase expenses decrease expenses increase cash decrease stockholders equity

Answer

Brief Explanations:

For Question 5, under the accrual - basis accounting, revenues are recognized when the performance obligation is satisfied, which is when the work is completed on the job. For Question 6, cash dividends are a distribution of a company's earnings to its shareholders. When a company pays cash dividends, it reduces the retained earnings (a part of stockholders' equity).

Answer:

Question 5: work is completed on the job Question 6: decrease stockholders' equity