Any amount by which capital at the end of a period exceeds the amount required to maintain opening capital is ________. a. Profit b. Loss c. Asset d. Liability
Q: A resource owned by the business with purpose of using it for generating future profit, is known as…
A: Assets: Anything of worth or a resource of value that may be turned into cash is referred to as an…
Q: Depreciation is generated due to a. Increase in the value of liability Ob. Decrease in capital…
A: Lets understand the meaning of depreciation. Depreciation is a reduction in value of asset due to…
Q: Which should be subtracted from the net income when using the indirect method? A. Loss on sale of…
A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents…
Q: 23) Depreciation expense, depletion expense, amortization expense on intangibles, start-up costs,…
A: The various financial statements of the business include the income statement, balance sheet and…
Q: Excess of revenue over expense is O a. Profit O b. Loss O C. Asset O d. Revenue
A: Revenue is the amount received from selling or transferring goods and services from the business to…
Q: Why is depreciation provided on non-current assets? a. so that the business entity concept is…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Interest payable is shown on the? A)income statement B)balance sheet as a long term liability…
A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…
Q: Net Working Capital is equal to a. Non Current Assets - Current Liabilities b. Non Current Assets -…
A: Current assets are those assets which are easily convertible in to cash or used with in a period of…
Q: Given the dual effects of accountable events, an decrease in an asset cannot possibly be accompanied…
A: Assets = Liabilities + Stockholders equity Every transaction has dual effect . The question is…
Q: Net Working Capital is equal to a. Current Assets - Non Current Liabilities b. Current Assets -…
A: Working capital is used by the business to maintain day-to-day operations. It can be calculated by…
Q: _________________ is the excess of current assets over the current liability of the concern during a…
A: Working is the difference between aggregate of all current assets minus current liabilities
Q: under the cost recovery method of revenue recognition, a. Income is recognized immediately b. Income…
A: Cost recovery method of recognition of revenue is used when there exists substantial doubt regarding…
Q: Which item would not be classified as an operating expense? a) Interest expense. b)…
A: Operating Expenses Operating expenses are those expenditures that a business incurs to engage in…
Q: 20. Income oflegal entities are formed from: a) profit from the main activity; b) indirect profit…
A: A legal entity refers to the organization which is formed by an individual or a group of individuals…
Q: How are assets to be reported when the liquidation basis of accounting is being applied?a. At cost…
A: Assets cannot be reported at its fair value, book value (cost less accumulated depreciation), or…
Q: A firm's financing costs include Select one: A. both A and B. B. interest expense C. depreciation…
A: The cost of interest or any other cost that is incurred by the firm at the time of borrowing funds…
Q: The excess of current assets over the current liabilities is called: O a. Capital employed O b.…
A: Introduction: Currents Assets: Assets which can be converted in to cash easily with in a short…
Q: Give an example of a transaction that results in: a. A decrease in an asset and a decrease in a…
A: Transaction analysis: Transaction analysis is an economic event that causes impact on the value of…
Q: Choose the correct. How are assets to be reported when the liquidation basis of accounting is being…
A: Assets cannot be reported at its fair value, book value (cost less accumulated depreciation), or…
Q: 7. How is the valuation of current assets affected if th OValuation is based on historical cost.…
A: Current assets are the assets that provide the financial benefit over a year. If the assets is held…
Q: For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the…
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
Q: A decrease in net assets arising from peripheral or incidental transactions is called a(n) * O…
A: Cost is the amount incurred which measured in monetory terms.It is in form of an expense or an…
Q: As per physical capital maintenance, when is the profit earned by the entity. a. Closing Net worth…
A: physical capital maintenance implies that a company only earns a profit if its productive or…
Q: Capital Expenditures are Select one: O a. Expenses incurred when purchasing non-current assets O b.…
A: Capital Expenditure is recorded on the fixed assets side of the balance sheet. These assets can not…
Q: ?The favorable balance of profit and loss account should be Added in liabilities Added in capital…
A: Favorable Balance of Profit and Loss Account: All costs are recorded on the debit side of the…
Q: -1) Write down at least two examples for : Asset Liability Capital or Owners Equity Revenue Expense
A: Assets: Assets are those items that provide value for money and future economic benefit for an…
Q: The entry to record transaction costs for financial assets measured at fair value through surplus or…
A: The correct answer for the above mentioned question is given in the following steps.
Q: 1. What amount should be reported as total assets after restatement for hyperinflation? a. 5,150,000…
A: Hyperinflation is the inflation on which the prices of the things has changed or increased and as a…
Q: 1. The value deducted from the revenue stream, which usually has no obligation toward covering…
A: Disclaimer: Since you have asked multiple questions we have answer first question please upload…
Q: Capitalizing a cost means to record the cost into a(n) a. contributed capital. O b. asset. Oc.…
A: Capitalization represents the cost of an asset recorded over a period of time. Whereas, when the…
Q: Depreciation occurs as a result of: A. Wear and tear B. Decrease in the value of assets C. Increase…
A: Since depreciation is occurse as a result of normal wear and tear and due to which it causes a…
Q: When Accumulated depreciation account is credited with the amount of depreciation a. The cost of…
A: When Depreciation on Fixed Assets cumulated every year and credited to Accumulated Depreciation It…
Q: he cost principle requires that companies record tangible capital assets at: a.fair value. b.book…
A: A historical cost is also known as the original cost which means the cost at which the asset…
Q: 1(a) State with reason whether the following statements are true or false (i) Change in Method of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Residual interest in the asset of an entity that remains after deducting its liabilities is? a.…
A: Accounting Equation - Accounting Equation is calculated using following equation - Assets =…
Q: 15 Under physical capital maintenance assumption, a profit is earned only if the physical operating…
A: Physical capital of the business is composed of all objects that a company purchases in order to use…
Q: - In the inflows and outflows method, the following are considered exceptional inflows: A) Interest…
A: The correct option in the given question is (A) Interest earned on investment and sale of…
Q: A capital expenditurea. adds to an asset.b. is expensed immediately.c. is a credit like capital…
A: Expenditure: It refers to the aggregated amount that is spent by a business during an accounting pe
Q: 4. Investment property is initially measured at cost, including transaction costs. Such cost…
A: The assets acquired by a business are recorded under different categories. The accounting treatment…
Q: Out of which equation is NOT CORRECT ? Please remember to select "WHICH IS NOT CORRECT" Select one:…
A: Answer - Total Liabilities = Total Assets - Shareholder's funds - Capital. This equation is…
Q: Subtracting all expenses from revenues yields Net liabilities O Net profit/Loss O Long-term assets O…
A: Net Liabilities - It is a difference between total debt ( short term + long term ) and cash &…
Q: 6. When computing the amount of interest cost to be capitalized, the concept of "avoidable interest"…
A: Capitalized interest represents the interest cost incurred to finance the construction of a…
Q: Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c.…
A: SOLUTION- DRAWINGS- IT IS THE AMOUNT TAKEN BY THE OWNER OF A BUSINESS FOR HIS PERSONAL USES . IT…
Q: Which accounting concepts requires non-current assets to be valued at cost less accumulated…
A: The accounting involves various principles on which business runs in long term or short term.
Step by step
Solved in 2 steps
- 11. Which type of financial assets are purchased only with the intent of selling them in the near future? DAFVTPL financial assets ⒸBFVTOCI Financial assets C. Amortized Cost financial assets OD. Investment accounted for using the equity method3. Transaction costs incurred the effective interest rate to be used for amortization of an investment in debt security accounted for as A. Increase; Fair value through profit or loss Decrease; Amortized cost C. Increase; Fair value through other comprehensive income D. Does not affect; Amortized cost В.Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding liability B. A reduction to the corresponding asset C. An increase in the corresponding liability D. An increase in the corresponding asset
- A resource owned by the business with purpose of using it for generating future profit, is known as Oa Capital b. Asset Oc. Liability Od. SurplusQuestion 3. Classify each of the following accounts as (a) asset, (b) liability, or (c) equity. a.→Defined benefit obligation b.→Plan asset c.→Right-of-use asset d.→Contract asset e.→ Unearned revenue f.→ Deferred tax asset g.→Accumulated other comprehensive losseThe money spent on long term assets is called Select one: O a. Revenue expenditures O b. Capital expenditure O c None of above O d. Cost
- Capitalizing a cost means to record the cost into a(n) a. contributed capital. Ob. asset. С. expenditure. d. income statement. A Moving to the next question prevents changes to this answer.How should you record a capital expenditure? a. Debit a liability b. Debit capital c. Debit an expense d. Debit an asset15 Under physical capital maintenance assumption, a profit is earned only if the physical operating capability of the entity at the end of the accounting period is _____________ its physical operating capability at the start of the period, after adjusting for any amounts contributed by or distributed to owners during the period. a. Equal to b. Less than c. None of the given options d. Greater than
- text __________________is the residual interest in the assets of the entity after deducting all of its liabilities a. Current Assets b. Equity c. Profit d. None of the given optionsWhen an asset increases, a liability must also increase.A gain or loss from debt restructuring should be A. treated as increase or decrease in Paid-in Capital B. recognized in income of the period of restructuring C. amortized over the remaining original life of the restructured loan D. allocated between the portion that is an increase (decrease) in Paid-in Capital and a portion that is recognized in the current income