Net Owners' Adjustment Revenue Expenses Income Assets Liabilities Equity Туре! Converting Assets to Expenses Туре II Converting Liabilities to Revenue Type III Accruing Unpaid Expenses Туре IV Accruing Uncollected Revenue No effect Increase Decrease Decrease No effect Decrease Increase No effect Increase No effect Decrease Increase No effect Increase Decrease No effect Increase Decrease Increase No effect Increase Increase No effect Increase

Q: What are the four types of adjustments?

A: Four types of Adjustments are: a) Accrued Revenue: Revenue which have been earned but we have not…

Q: How is a gain contingency reported?

A: Gain contingencies: The excess of book value over the amount to be received is actually gain…

Q: Distinguish between program service expenses and supporting service expenses.

A: A nonprofit organization’s expenses can be classified into two types, they are expenses for program…

Q: What are the four distinct categories of adjustments?

A: Adjusting entries in accounting are made with a view to accurately reflect the expenses and income…

Q: Discuss the difference between the Rsquared and the adjusted R squared

A: R-squared tells you how well your model explains the variation in your data, while adjusted…

Q: On what basis should the transaction price be allocated to various performance obligations? Identify…

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Q: Differentiate between the accumulated benefit obligation and the projected benefit obligation.

A: ABO (Accumulated benefit obligation) and PBO (Projected benefit obligation) are similar in most of…

Q: Define Miscellaneous expense.

A: Step 1 Expense is the amount incurred by the organization to generate revenue. It is shown in the…

Q: Define each of the following terms.f. Conversion ratio; conversion price; conversion value

A: Answer: Conversion ratio: It is ratio of converting bonds into the common stock of the company. An…

Q: Define the term Contract Modifications.

A: Accounting: Accounting is an art of collecting, recording, summarizing and presenting the financial…

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: Briefly explain the concepts of temporary difference and permanent difference

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Q: Define period costs.

A: Period costs are not joined to items and the company does not need for Offer on Sale of items and…

Q: Differentiate between an originating temporary difference and a reversing difference.

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Q: Explain service method of allocating prior service cost.

A: Service cost refers to the part of pension expenses deducted every year. Service cost is amortized…

Q: Define adjusted present value approach (APV)

A: Introduction Adjusted present value is a valuation method introduced in 1974 by Stewart Myers.…

Q: Why GAAP requires the allowance method

A: while accounting the uncollectible accounts  in the books of accounts GAAP requires the allowance…

Q: Explain an example of deferred expense.

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Q: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: The purpose of adjustments is to?

A: In simple words, adjusting entries are the changes to the journal entries that are already made in…

Q: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: Define Fixed charge coverage

A: The formula to compute fixed charge coverage ratio:

Q: Define Adjustments

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

Q: Distinguish between sacrificing ratio and gaining tab.

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: Define Allowance method.

A: Accounts Receivables:   It is the money owed to the company by outside entities for the products or…

Q: relevant (differential) revenues and relevant (differential) costs

A: Relevant revenues and relevant costs are two terms used in evaluating the acceptance of special…