Discuss the accounting concepts behind reporting unearned income.

Q: In Accrual-Basis Accounting how can you recognize your Revenues?

A: The accounting based on accrual method refers to recording of revenue and expenses when they are…

Q: The accrual basis of accounting record income when it is :

A: SOLUTION- ACCRUAL BASIS OF ACCOUNTING- IN THAT REVENUES ARE REPORTED ON THE INCOME STATEMENT WHEN…

Q: Accounting for revenues and expenses - give examples

A: The answer is provided as follows:

Q: What is the correct net income under the accrual basis of accoun

A: Two Methods: (1) Cash basis (2) Accrual basis. In cash basis income and expenditure are recorded as…

Q: Prepare the following i. The income & expenditure account for the financial period

A: Income and expenditure is similar to P & L A/C of trading /business entities.it is used by non-…

Q: If you're using the accrual accounting methodology, how do you figure out your net income?

A: Model of Accrual Accounting: This is a frequently used accounting principle that indicates the order…

Q: How revenues and expenses are are recognized under the accrual accounting?

A:

Q: When are revenues and costs recorded in accrual accounting

A: The Answer

Q: Explain the what is statement of comprehensive income. Discuss the accounts contained in statement…

A: Comprehensive income includes unrealized profits or losses on hedge/derivative financial…

Q: Define Accrual accounting.

A:

Q: asis accounting. Explain with examples?

A: Answer: Basis of differences Cash Basis Accrual Basis Types of transactions recorded Only cash…

Q: What basic characteristic distinguishes items reported onthe income statement from items reported on…

A: Balance sheet is the financial statement of a company. It helps in maintaining the records of…

Q: explain the purpose of the income statement and what information it contains. Give examples .

A: Every business operates for the purpose of results and profits. At the end of accounting period,…

Q: • distinguish between the operating and non-operating components of the income statement

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What is a prepaid expense and where is it reported in the financial statements?

A: Prepaid expense:   Prepaid expenses are any expenses that is paid before it becomes due. A prepaid…

Q: Which are the total interest expense in the income statement?

A: Interest expenses mean costs related to financing. It is also called finance costs. From the above…

Q: How/where is a revenue increase shown on a pro forma income statement?

A: Pro forma income statement is the budgeted or estimated income statement which shows all estimated…

Q: Required: Prepare comparative statement of income and retained earnings.

A: Answer:

Q: Prepare a partial income statement, beginning with income before income taxes.

A: The income statement is one of the financial statements of the business entity. It reports…

Q: Where does the accrual accounting focuses?

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the financial…

Q: Describe the accrual accounting concepts that appear in financial statements.

A: Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to…

Q: What is referred by unearned income? How is it adjusted in the final accounts?

A: Unearned income:Unearned income is known as deferred income or deferred revenue. It is the money…

Q: The accrual basis of accounting records expenses when they are :

A: Accrual basis of accounting follows matching principal where cost incurred to earn revenue are…

Q: Explain how to report various income items.

A: Introduction Income/Revenue is the money received from business/profession/service. There are many…

Q: What is the purpose of arranging an income statement toshow subtotals for income from continuing…

A: Income statement is prepared to compute the total net profit or loss generated or incurred during an…

Q: How does income statements disclosures are made?

A: Income Statement:   It is financial statement of an organization at the end of the period to report…

Q: What is meant by the terms elements and items as theyrelate to the income statement? Why might items…

A:

Q: If a functional expense classification is used for the statement of comprehensive income, what must…

A: Expenses: Expenses means money spent for getting revenue to the entity. It involves cost of…

Q: Explain the basic features of Income and Expenditure Account and ofReceipt and Payment Account.

A: Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.

Q: When do accountants consider revenue to be realized?What basic question about recording revenue in…

A:

Q: Discuss how to report various income items.

A: Introduction Income/Revenue is the money received from business/profession/service. There are many…

Q: How is the Income Summary account used? Is it a temporary or permanent account?

A: Income summary is an account which is prepared for closing accounts. It is prepared at the end of…

Q: Definitions of Common Income and Expense Items

A: Common Income can have following definitions: Common income is the excess of revenue over costs for…

Q: Explain Accrual Accounting as it relates to revenue and expenses.

A: Accounting refers to recording, posting, analysing, summarising and communicating the financial…

Q: How are revenues and expenses reported on the income statement under (a) the cash basis of…

A: Under the cash basis of accounting, revenues are recorded when a business receives cash or cash…

Q: What accounts can appear on the Income Statement?

A: Income statement is a statement that helps in calculating the income or the profit and loss of a…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: Define accounting income

A: Income: It can be defined as the amount received by the business or an individual from selling its…

Q: Explain what the accrual basis of accounting is and who requires it.

A: Accrual basis of accounting: Under this method of accounting, the revenues, and their related…