Answered: Payment of salary expense will result…

Payment of salary expense will result in: I. Decrease in asset. II. Decrease in owner's equity. III. Increase in liability. II only. III only. O I only. O Both I and II.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Under AASB 119, leave entitlements that may be carried forward to a future financial period if…

A: Leave entitlement means the number of days the employee can take off (holiday) in a year which are…

Q: Which of the following statements regarding the recognition of expenses related to long-term…

A: Recognition of expenses in accounting refers to the process of recording and reporting the costs…

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: Excess of revenue over expense is O a. Profit O b. Loss O C. Asset O d. Revenue

A: Revenue is the amount received from selling or transferring goods and services from the business to…

Q: Compensation income may be in the form of monetary or in-kind benefit. a.true b.false

Q: EBITDA removes which of the following from the operating income number? a. Significant variable and…

A: Earnings Before Interest, Taxes, Depreciation, and Amortization is referred to as EBITDA. It is a…

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: Any amount by which capital at the end of a period exceeds the amount required to maintain opening…

A: Any amount by which capital at the end of a period exceeds the amount required to maintain opening…

Q: Determine if this shall result in recognition of liabilities 4. Receipt of goods ordered from a…

A: The goods purchased on account increases the inventory and also increase the liability.

Q: Payment must be probable in order for a compensated absence to be accrued. True False

A: The term "probable" is pivotal in the context of accruing liabilities, especially concerning…

Q: Unreimbursed employee expenses are deductible. a. True 6. False

A: Under the Tax Cuts and Jobs Act,the most unreimbursed employee expenses are no longer deductible for…

Q: 7 What are utilities, property taxes, and insurance all examples of? A O Contract contingencies. BO…

A: We first needs to understand all the terms given in the question to answer the question. Contract…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: 4. An insured may not be compensated by the insurance company in an amount exceeding the insured's…

A: The following are some of the principles of insurance, they are Principle of contribution Principle…

Q: _________________ is the excess of current assets over the current liability of the concern during a…

A: Working is the difference between aggregate of all current assets minus current liabilities

Q: Bonus in reduction of premium given in the adjustments will be recorded in: a. Both credit and debit…

A: Bonus is the share of profit which a policy holder gets from the life insurance company. Premium…

Q: An increase in OCI related to plan assets occurs when: Select one: a. The accumulated benefit…

A: The information given is a question related to Plan Assets and Deferred Obligation Accounting.

Q: S1: The initial measurement under PFRS 17, is the sum of the fulfillment cash flows and the…

A: IFRS 17:-It is the standard which deals which insurance contract, here it make sure that entity…

Q: In an equity-settled transaction, if the total compensation changes in the subsequent period, the…

A: Under share based payment, if during subsequent period, total compensation changes then that change…

Q: In a wash sale, a loss is not deductible. Group of answer choices True False

A: The question is related Wash Sale loss. As per Internal Service Revenue (IRS) the wash sale rule is…

Q: In a case of low value asset exemption, rent paid in advance by the lessee should be treated as O…

A: Rent paid in Advance by the lessee shall be classified as Prepaid Rent.. Option Prepaid Rent is…

Q: income recieved but service not rendered, Please suggest the JE

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: crease in revenue is on the credit side hence a decrease in expense is also on credit side true…

A: Solution: Revenues have credit balance and expenses have debit balances. When Revenue is credited it…

Q: Which one is fixed cost اخترأحد الخیارات a. Both A & B O b. Rent,salaries, Insurance O c. Only B…

A: The fixed costs are the costs which remain fixed for the period of time.

Q: If cash is received from a customer in the current period, but the related performance obligation is…

A: Accounting principles are general guidelines that are used by the accountant in preparing the…

Q: Expense and loss are the same. Net loss is a deficit or negative figure in the net income lin

A: No expense and loss are not the same. Yes net loss is shown as a negative figure (in brackets) in…

Q: Outstanding rent is Select one: a. Long term liability O b. A revenue C. A current liability O d. A…

A: Outstanding rent come under the head of Current Liability within the record. Outstanding rent are…

Q: In the revenue account bonus in reduction of premium is shown as :

A: Throughout all situations involving general insurance, the insurance policy will always be acquired…

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: Compensation can be benefits. Select one: O a. Both a and b O b. None of the other points O c.…

A: Introduction: Compensation: Its given to employees for their services with the company. Compensation…

Q: Which one among the following conditions is NOT a condition of Murabaha: - Payment may be made…

A: Murabaha, also known as cost-plus finance, is an Islamic financing system in which the buyer and…

Q: Which of the following is a characteristic of a current liability but not a non- 1 pc current…

A: Answer: The following is the characteristic of current liability and not a non-current liability:…

Q: Statement II. The transaction price for the sale of the product with premium is recorded as a…

A: The answer has been mentioned below.

Q: The following are methods in calculating the capital Double-Declining Method Quarterly-Deduction…

A: SLD method depreciates the asset from the purchase price to the residual value in even amounts over…

Q: Which of the following is not an example of a fixed cost A.Salaries of staff b. Direct…

A: A fixed cost is a type of cost which does not change with the change in level of activity and will…

Q: __ is a contract that involves compensation for specific potential future losses in exchange for…

A: Step 1 Currency swap forward contracts are frequently used by companies with international market…

Q: Which one of the following is a special type of liability? a. Accrued expenses b. Salaries payable…

A: Accrued expense: These are those expenses which due but not yet paid.This is short term liability…

Q: Which of these is an example of an income item that is typically both operating and persistent? A.…

A: The income statement is a financial document that offers a condensed overview of a company's…

Q: An expense represents a liability a cost of doing business none of the above a withdrawal

A: Liability represents the amount which will be paid by the entity in future as a result of present or…

Q: Under AASB 119, leave entitlements that may be carried forward to a future financial period if…

A: Leave entitlement is the number of paid holidays allowed to an employee in that year. Accumulative…

Q: Profit is earned on sale of asset when a. Sale price is less than Accumulated Depreciation b. Sale…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: is prepaid reant an expense

A: Prepaid expense:Prepaid expense is the advance payment for future expenses is called as prepaid…

Q: Under both accrual basis and modified accrual basis we recognize expenses when it is incurred. a.…

A: Accrual basis of accounting says that expense should be recorded in that period in which they are…

Q: The key difference between rental income assessed under S10(1)(a) and S10(1)(f) is: a. The S10(1)(a)…

A: Rental Income: Rental income refers to the full amount of rent and related payments you receive when…

Q: Determine if this shall result in recognition of liabilities 14.Violation of the terms of a…

A: As per IAS 37 of IFRS Provisions, contingent liabilities and continent assets A contingent liability…

Q: Journey Company sells 120 packs of Pokemon cards for $30 each. Sales tax of 9% is required on all…

A: There are two types of sales in business and those are enumerated as below: 1. Cash sales 2.…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Explanation:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1) Impairment affects the historical cost of a liability over time. 2) Inflation affects the historical cost of a liability over time. a. both statements are true b. both statements are false c. 1st statement is true, 2nd is false d. 1st statement is false, 2nd is true
An expense represents a liability a cost of doing business none of the above a withdrawal
Q:How is accidental loss of goods treated in final account in case: a: Goods had not been insured or Goods have been insured and the insurance company has claims associated with it.
Determine if this shall result in recognition of liabilities 5. signing of employment contract by a new employee a. yes b. no
9
Net Operating Income (-) Interest Expense (-) Cost Recovery Allowance (=) _________________ (or) NOI (minus) Interest Expense (minus) Cost Recovery Allowance (equals) ___________________ Group of answer choices
Wages refers to both pay and benefits. True false
3. High employee turnover, employer's, a) Increases b) Decreases c) Does not affect d) Payroll taxable income e) Income f) SUTA g) FUTA labor burden because it
Which of the following is/are true with regard to accounting for short-term employee benefits? Unpaid short-term benefits are reported as accrued under current liabilities at an undiscounted value. If the payment exceeds the undiscounted amount of the benefits, the excess is reported as prepayment under current assets. The benefits are reported as an expense under profit or loss, unless another standard requires or permits the cost of the benefits to be capitalized. Group of answer choices Only statement 1. All statements are true. Only statement 3. Only statement 2.
Revenue Expenditures are Select one: a. None of the these b. No direct effect on profit c.Expenses are shown in Balance Sheet d. Short-life and must always be replaced to generate revenue for an accounting period
An encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. False
Question 12 Costs that are capitalized: O Show up as an expense on the income statement without ever being recorded on the balance sheet O None of the possible choices O Will initially be recorded as an asset on the balance sheet O Never exist as part of accrual accounting