Describe the expense recognition principle (matching principle).

Q: Explain the two types of disbursements for services.

A: Disbursement can be defined as the act of paying out the money. This includes the money that is…

Q: An example of an expense classifi cation by function is: B . interest expense

A: An example of an expense classification by function is

Q: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

Q: Define the term accrued expense.

A:

Q: The expense recognition principle relates

A: Expense recognition is based on accrual and matching concept where accrual concept states that…

Q: what is the difference betwwen classifying an expense by nature or function?

A: The costs that are incurred to earn revenues in the process of operating activities of the business…

Q: What would the total expense be?

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: building. Compute the exclusions from gross income of Arturo:

A: Properties received from father is not taxable because it is a relative  So,Immovable asset received…

Q: Describe the different approaches of expense recognition.

A: Expenses are being recognized when the revenues and relevant expenses are matched for the same…

Q: Explain the term utilities expense and give an example.

A: Utilities Expenses are expenses incurred on public service utilities like electricity, sewage,…

Q: Describe the accounting when there is a right of return.

A: The right of return entitles a customer to a full or partial refund of the amount paid or a credit…

Q: Revenue Realization and Matching principles

A: Option 1 is wrong because the statement is true. Revenue should be recognized when the process of…

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: Define Expense recognition.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Define receivables and understand issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Define the term revenue recognition.

A: Accounting principle: These are the guidelines which are to be applied while preparing the…

Q: What is Receipt and Payment Account? How is it different from Income and Expenditure Account?

A: Receipts and payment account is a real account. This account is a summarised cash book which…

Q: Explain an example of deferred expense.

A:

Q: Expense recognition is implemented by one of four different approaches, depending on the nature of…

A:

Q: Explain what is meant by the phrase matched with revenues

A: The term matched with revenues means to recognize expenses in the same period as the related…

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: Define expense recognition principle

A: Expense recognition principle says that all expenses for the particular period must be recognized in…

Q: Of what merit is the contention that the allowance methodlacks the objectivity of the direct…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: Explain Prorations, Escrow Costs, and Payments to Third Parties?

A: Prorations, Escrow Costs and Payment to Third Parties all are methods of payments as per different…

Q: What is function of expense method?

A: Organisations can opt for either of the options to prepare and report the income statement. They are…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: Explain the difference between contract assets, contract liabilities, and accounts receivable.

A: Account receivable: The amount of money to be received by a company for the sale of goods and…

Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

Q: Define Core Revenue Recognition Principle.

A: The core principle of revenue recognition standard is that an entity should recognize revenue to…

Q: What is a functional expense statement?

A: The answer is explained as follows:

Q: describe general principles of expense recognition, specifi c expense recognition applications, and…

A: Expenses mean a decrease in economic benefits. Expenses are nothing but those transactions resulting…

Q: Define Accretion expense.

A: Accretion expense is incurred due to the effluxion of time which is calculated on the basis of…

Q: TRUE OR FALSE   The main difference between the function and the nature of expense methods is the…

A: Salaries, rent, supplies, and travel are all examples of natural expense classifications whereas in…

Q: Describe the accounting and amortization of prior service costs.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Explain the reporting for (a) costs to fulfill a contract and (b) collectibility.

A: Fulfillment costs are divided into two categories: (1) Those that arise from assets; (2) Those that…

Q: What are (a) pass-through expenses, (b) recoverable expenses, and (c) common area expenses? Give…

A: a) Pass through expense: This is an expense which the customer pays directly to a third party or…

Q: For which of the following accounts would the matching concept be the most appropriate?a. Cost of…

A: Matching principle in accounting says that all revenues of the business for the particular period…

Q: What are the four different approaches to implementing expense recognition? Give an example of an…

A: