Expenses recognized in the wrong accounting period: What does it mean when a company may delay recording an expense by recording as an asset? Please explain.

Q: Generally accepted accounting principles do not normally allow the use of the direct write-off…

A: GAAp: Generally accepted accounting principles. Two methods for writing off of bad debts are:…

Q: Expense Recognition Question: Why is that sometimes there is no direct relationship between…

A: Accounting is based on a set of principles and rules and the expense recognition principle is one of…

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: Which one of the following does not appear in the profit and loss account?

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: How did they get the selling and administrative expense (not traced

A: Activity based costing is method of manufacturing overhead allocation. Under this costing method…

Q: What is the meaning of the term “an impairment loss of an asset” specified in accounting and the…

A: The question is related to Impairment of Assets. Impairment loss is calculated with the help of…

Q: purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at…

A: Property, plant, and equipment (PPE) are long-term assets that are crucial to business operations.…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: Expense Recoognition: What does it mean when assets are "expensed"? Why do costs do not qualify as…

A: Expense recognition refers to the accounting process of recording expenses in the financial…

Q: Which of the following would NOT be reflected in the income statement?

A: Income statement- it is a part of financial statements prepared by the company that shows the…

Q: Why does the accounting profession require the use of the allowance method of accounting for losses…

A: Step 1 Basically, the allowance method is the reporting way to report the loss of credit in books of…

Q: Explain the adjustments that may be made for the accounting discretions about the following:…

A: The accounting discretions refer to the choices and judgments made by accountants when preparing…

Q: What is the purpose of the accounting?

A: Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions…

Q: 1) When an item of expense is paid and recorded inadvance, it is normally called a(n)

A: Cash may be paid before or after incurring expense.

Q: When a loss contingency is recognized, where is it reported on the income statement?

A: A financial statement that lists the company's earnings and expenses is called an income statement.…

Q: does a cancellation of a service affect the companys balance sheet or book value?

A: Cancellation of service affect the company's balance sheet or book value : Some of the contracts…

Q: As prepaid assets are used to generate revenue, an adjustment is necessary to reduce the previously…

A: Prepaid assets are those assets which consists of advance payments for goods and services that are…

Q: What is the difference between a liability and an expense in accounting?

A: A company's future debt or obligation to a third party is known as a liability. This can include…

Q: Prior-period adjustments can arise from

A: Prior period items are expenses or incomes which arise in the current period as a result of errors…

Q: ndicate if it is an accounting mistake and provide an explanation for why it is or is not.

A: The Answer

Q: A transaction is not recorded by the accountant either wholly or partially in the books of accounts…

A: There are various errors that an accountant can commit while recording or posting financial…

Q: If depreciation expense is not recorded how would that affect financial statements and…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: Discuss the two methods of recording bad debt expense. What type of company uses each method?

A: The objective of this question is to understand the two methods of recording bad debt expense and to…

Q: The Accounting Cycle Question: What does it mean to adjust accounts for timing mismatches? What is…

A: Adjusting accounts for timing mismatches refers to the process of aligning the recognition of…

Q: Would a change from Completed Contract to Percentage of Completion be a change in accounting…

A: Change in accounting principle means that change in how financial information is calculated, while…

Q: The omission of an adjusting entry for the depreciation of equipment will have what effect on the…

A: Depreciation represents the reduction in the value of the long term asset over a useful period of…

Q: ompany can not rely on net income as a valid measure to pay fixed charges

A:

Q: When a fixed asset is sold, what type of accounting entry is made?

A: Fixed asset is an tangible asset,non current asset.

Q: At December 31, 2017, Hyasaki Corporation has the following account balances: Bonds payable, due…

A: Workings: Bonds payable due = $ 2000000

Q: All else being equal, if a company FAILS to record an impairment loss on a depreciable asset at the…

A: The given question is asked to find the correct option from the above available options and explain.…

Q: Why is a service expense a good account for recording a fictitious expense?

A: Fictitious Expense:  Fictitious expense has no tangible existence or any value, but it is created in…

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: What controversy relates to the accounting for net operating loss carryforwards?  What is your…

A: Net operating loss (NOL) carryforwards refer to a tax provision that allows a business to use its…

Q: What is an Asset impairment in accounting and what are the factors for considering an impairment?

A: The question is based on the concept of Financial Accounting. An asset impairment is the subsequent…

Q: Is it still necessary to record a transaction if it has no net effect on the accounting equation?…

A: Accounting equation says that total assets in the business must always be equal to total liabilities…

Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…

A: A transaction is a business engagement that has an economic effect on a financial statement and is…

Q: A statement of affairs measures a deficiency – traceable to unsecured creditors without priority –…

A: