Explain the major objectives and limitations of fundamental analysis and differentiate between ordinary and extra ordinary income with example.

Q: accounting income and taxable income?

A: Accounting Income -: Accounting Income is the revenue a firm earns or keeps after paying off all…

Q: What types of ordinary and statutory income do not constitute assessable income?

A: Ordinary Income is that income which is taxable at ordinary rates or earned from working. Like…

Q: Which of the following is not a component of the formula used to distribute income?

A: Partnership: Partnership is a form of business organization in which two or more than two…

Q: Briefly explain the difference between gross profit, net profit and EBIT.

A: Gross Profit is computed by deducting Cost of goods sold from Sales. Gross profit is the profit a…

Q: According to our authors, define and provide an example of “comprehensive income.”

A: Comprehensive Income: The term "comprehensive income" refers to the combination of "net income" and…

Q: Explain the income & expenditure and Receipts & payment? Draw the format with example? What is the…

A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting…

Q: Which of the following refers to the elements of Comprehensive Income?  a) Net Income, Interest…

A: Net income is the excess of sales over all the expenses including interest expense and income taxes.

Q: Explain the components of non operating income.

A: Non Operating Income is that part of an organisation's income that is obtained from activities not…

Q: Explain the difference between statement of financial position and statement of comprehensive…

A: The statement of comprehensive income represents the entity's financial performance (profitability)…

Q: Explain why administrative and compliance costs of taxation is important regarding taxation?

A: Administrative costs: Administrative costs obviously comprise the expenses of operating and managing…

Q: Differentiate between the concepts of profit and interest with examples of each.

A: Profit:-Profit is the amount which one receives when all expenses get deducted from Revenue during a…

Q: How to prepare pro-forma income statement?

A: Income statement is a statement which shows all incomes, expenses for calculation of net profit or…

Q: 1. What is the difference between accounting anc economic profit?

A: Solution Note as per the Q&A guideline we are required to answer the first question only. Please…

Q: In accordance with U.S. generally accepted accounting principles, which translation combination is…

A: If the U.S dollar is the functional currency of the subsidiary company then the temporal method as…

Q: Discuss the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

Q: What is the difference between income statement and statement of comprehensive income?

A: GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules and…

Q: Define Income Taxation

A: Taxation is the way of imposing tax on particular income or the value of consumption of certain…

Q: d accepts the special order, the effect on income w

A: Particulars Normal sale Special order Differential revenue/(costs) Sales 400000 units @$40 =…

Q: Discuss, using practical example how revenue expenditure should not be capitalized?

A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…

Q: How would you differentiate items that are exempted from gross income and items deductible from…

A: Items exempted from gross income refers to income which need not be part of income while calculating…

Q: allocation of income or loss to have economic effect

A: Income or loss is the net result of operational activities of a business conducted during a…

Q: what the difference between accounting income and economic income?

A: Accounting income can be defined as an estimate of the performance in the operations of the company.…

Q: Distinguish between operating and nonoperating income in relation to the income statement.

A: Definition: The income statement is a statement that helps in calculating the income or the profit…

Q: erence between financial income and taxable income?

A: 7 Correct answer :- A Premium paid for officers life insurance   8 Correct answer :- C The…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

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: What are the definition criteria of an income and an expense?

A: Ans. Income is money what an individual or business receives in exchange for producing goods or…

Q: Which items are NOT other comprehensive income?

A: Comprehensive income can be classified into: Net income Other comprehensive income.   Net income…

Q: Explain why it is important to distinguish between capital expenditure and revenue expenditure, and…

A: Expenditures: The Expenditures are the way of spending money on something, or the money that is…

Q: describe the components of the income statement and alternative presentation formats of that…

A: Income statement is also called profit or loss a/c. Income statement shows the performance of the…

Q: Gain contingencies are usually recognized in the income statemment when: a.realized b. occurance is…

A: Contingency represents the situation where the gain or loss depends on the event that may or may not…

Q: Explain the transaction approach to measuring income.Why is the transaction approach to income…

A: Transaction approach:

Q: What is the income-statement approach? When is it used?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Advantages and Disadvantages of Reporting Items in Other comprehensive income instead of on the face…

A: Other Comprehensive income: OCI includes all financial items which result in changes in the…

Q: Which of the following is true? Non-deductible expense is deducted to financial income in computing…

A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…

Q: Which of the following is not an acceptable way of displaying the components of other comprehensive…

A: Comprehensive income: Comprehensive income represents the amount of net income plus other…

Q: describe other comprehensive income, and identify major types of items included in it.

A: Income statement: It refers to a financial statement that presents all the income earned by the…

Q: (b) ( of taxation state? Briefly explain the major shortcoming of this principle. What does the…

A: According to the benefit principle of taxation, the government would be charged for employing all of…

Q: Define extraordinary items. How are extraordinaryitems distinguished from items that are presented…

A: Extraordinary items are those item that are unusual and that are not expected by the management of…