Long term liabilities are usually associated with -purchase of a building -purchase of equipment -purchase of wages owed -both a and b
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A: When any business purchase any fixed assets, then every year value of the assets will decrease due…
Q: The following are the typical classifications used in a balance sheet: a. Current assets…
A: Balance sheet shows the financial position of the organisation and it has three sections assets,…
Q: Repairs and maintenance costs are normally: O a. Expensed in the profit or loss as incurred. O b.…
A: All expenses which are having short term benefit or benefit for only one year, that should be…
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A: How much to pay is the situation where the time to pay off the obligation and creditor are…
Q: hich one of the following category prepaid expenses belong to? a. Current asset b. Intangible asset…
A: Prepaid expenses are those expenses which are paid in advance for future period of time and expenses…
Q: Accumulated depreciation is: The depreciation expense recorded on an asset to date. The…
A: Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its…
Q: The Working Capital will not be needed for: a. Payment of wages and salary b. Purchase of Machinery…
A: The formula for working capital is shown:
Q: Which one of the following statements does not describe liabilities correctly? Select one: O a. Most…
A: Liabilities are described as obligations which are required to be paid by the business. These are…
Q: Wages payable is classified as : a. Current asset b. Long term liability c. Fixed asset d. Current…
A: Current Assets: Current assets can be sold in the near future and cash can be generated from the…
Q: Assets that are NOT expected to provide benefits for a number of accounting periods are called…
A: Solution: Assets that are NOT expected to provide benefits for a number of accounting periods are…
Q: f the Construction in Progress account is greater than the Contract Billings, the excess is treated…
A: Construction in progress means the contracts' work which still going on and is yet to be completed.
Q: Routine maintenance costs for capital assets are deducted in the year the amount is paid or…
A: Routine maintenance expense are the outlays that are incurred on regular basis on certain equipment…
Q: An increase in the value of a home is called a. depreciation. b. amortization. c. equity. d.…
A: The question is based on the concept of valuation of fixed asset in accounting term
Q: Which of the following would be considered a long-term liability? a. interest payable b.…
A: Analysis of options a. interest payable Since interest will be paid within 12 months or normal cycle…
Q: How should the acquisition of a factory building by entering into a lease agreement be reported on…
A: Acquisition of a factory building is an investing activity Lease agreement is a financing activity.…
Q: Assets used to generate revenue for a period longer than one year are called :Select one A. Fixed…
A: Assets indicate the resources owned by the company and shows in the balance sheet which represent…
Q: If deposit for lease contract was recorded as Rent Expense,
A: Rent deposit is the deposit made by the tenant to the landlord. Rent deposit will be held by the…
Q: Which of the following would be considered a long−term asset? A. Office Supplies B. Land…
A: The balance sheet represents the financial position of the business with assets and liabilities on a…
Q: Accumulated Depreciation appears on the
A: The accumulated depreciation is deducted out of the purchase value of a company in order to arrive…
Q: Which of the following journal entries correctly reflect settlement date accounting? Select one: a.…
A: In case of settlement accounting, transactions have to be recorded in the books of accounts of the…
Q: In an operating lease, rent collected in advance by the lessor should be treated as? prepaid…
A: Introduction: Operating lease: Under the operating lease the owner ship of the Asset does not…
Q: If the value of liabilities is 80000 OMR and owner's equity is 30000 OMR. Calculate the amount of…
A: Net Assets = Total liabilities + Equity
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: Accounting Which statement is false? Accounting for asset retirement obligations (ARO) apply to both…
A: The given question asked about the correctness of the statement. Assets retirement obligations:…
Q: Income earned from incidental operations before an asset is put to use is: deducted from the…
A: Incidental Revenue - Incidental revenue can be earned anytime during or before the assets put to use…
Q: The “carrying value” of a long term asset on the Balance Sheet represents: a. The net book value of…
A: Correct answer-option a:The net book value of the asset
Q: Interest payable is shown on the Oincome statement as an operating exp Obalance sheet as a long-term…
A: Interest payable is a liability account, shown on a company's balance sheet, which represents the…
Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…
A: Outstanding expenses means those expenses which pertains to current period and recorded in the…
Q: The accounting treatment for depreciation expense in the balance sheet will be: a. Added to the…
A: Solution: Depreciation is charged on non current assets like equipment, building, vehicle etc. It is…
Q: Under IFRS, receivables are to be reported on the balance sheet at: a. amortized cost. b.…
A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…
Q: QUESTION 17 Which of the following is the most likely journal erry to record the amortisation of an…
A: Amortization of Intangible Assets:- it means expensing the total cost of Intangible assets such as…
Q: Accumulated Depreciation appears on the... Select one: a. balance sheet in the long-term liabilities…
A: Solution:- Introduction:- Accumulated depreciation is the total depreciation of fixed asset. The…
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: Which of the following is not a required disclosure regarding intangible assets that are amortized…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: The time an asset is expected to last is called its a.fiscal period. b.depreciation. c.useful life.…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: Identify an example of a non-current asset. O a. Machinery O b. Bank overdraft O c. Inventory d.…
A: Non-current asset refers to the asset which will not realize in cash within a year from the…
Q: An asset classified as property, plant, and equipment on the balance sheet must have which one of…
A: Property plant and equipment are: long term assets means they are expected to be used from more…
Q: Which should be debited when depreciating a leased asset? a. Lease Liability b. Non-current Asset c.…
A: Answer- d . Depreciation expense Depreciating a leased asset is similar to a purchased fixed asset…
Q: The amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b.…
A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…
Q: Expenditures to acquire long-term assets are most likely classified as a. Personnel Services b.…
A: The question is based on the concept of Accounting Theory.
Q: When a lessor receives cash on an operating lease, which of the following accounts is increased? A.…
A: Lease classify as sale type lease means it is a financial lease where lessor has given right to use…
Q: The result of subtracting liabilities from assets is known as: a) net worth b) years c) bonds d)…
A: Assets is kind of resources for a company or an individual which is used to generate long term…
Q: Working capital is needed for the following purpose: O a. Payment of long term liabilities O b.…
A:
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- Which of the following would be considered a long-term liability? a. interest payable b. mortgages payable c. accounts payable d. salaries payableWhich of the following is typically recorded at its present value? a. long-term investments b. long-term liabilities c. intangible assets d. contigent liabilitiesDescribe When Short-Term Obligations of liabilities Are Expected to Be Refinanced.
- The accounting treatment for depreciation expense in the balance sheet will be: a. Added to the corresponding long term liability b. Added to the corresponding non-current asset c. Deducted from the corresponding long term liability d. Deducted from the corresponding non-current assetPrepaid insurance is reported on the balance sheet as a a.long-term liability b.current asset c.current liability d.fixed assetWhen a lessee makes periodic cash payments for a finance lease, which of the following accounts is increased? A.Lease Liability B.Lease Rental Expense C.Right-of-Use Asset D.Interest Expense
- Which of the following is an accrued liability? * O Unearned subscriptions revenue Current portion of long-term debt payable O wages payable O Rent revenueDescribe the obligations of long term liabilities.Liabilities are classified on the balance sheet as current or Select one: a. long-term. b. accrued. C. unearned. d. deferred.
- Potential liabilities that depend on future events arising out of past events are calleda. contingent liabilities.b. estimated liabilities.c. current liabilities.d. long-term liabilities.What are the two types of losses that can become evidentin accounting for long-term contracts? What is the natureof each type of loss? How is each type accounted for?Choose an example of non-current liability. O a. Interest payable O b. Bonds payable Oc. Wages payable O d. Accrued expense