Problem 8 Cool Ethan, an entrepreneur, was involved in an accident and was able to claim the following

Q: What is the difference between a bill and a payment

A: Answer: Bill and payment are two different terns that can be used for same document. The two terms…

Q: What are delayed revenues, and how do they work? Give three specific instances.

A: Delayed revenues, and three specific instances will be explained:

Q: what is net purchases? Is there another term for it?

A: Net purchases is an important metric in accounting because it is used to calculate the cost of goods…

Q: What exactly is a genuine account?

A: Genuine account: Genuine account is generally referred to as a real account. Real accounts are…

Q: What's the difference between accounts payable and receivable?

A: Accounts Payable is the current liability for the business and Accounts Receivable is a current…

Q: What exactly is the meaning of the word debit?

A: All transactions of an entity are presented in form of journal entries. Journal entry consists of…

Q: he profit and loss account's negative balance should b

A: One of a firm's business accounts, an income statement, also known as a profit and loss account,…

Q: What is deposits in transit?

A: Definition: Bank reconciliation: Bank statement is prepared by the bank. The company maintains its…

Q: How to determine the timing and measurement of revenue.

A: Revenue recognition principle is the principle that determines when and how much amount should be…

Q: How does assignment of accounts receivable differ from factoring?

A: Financial Management  Financial management is the area of business concerned with allocating the…

Q: What IF function can be used to determine whether or not an amount in a certain cell should be a…

A: A journal entry is the first step in including a transaction into the books of accounts. Under the…

Q: What is Form of payments

A: Payments are the consideration paid for buying goods or for receiving services. Goods include…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: What makes a nominal account different from a real one?

A: SOLUTION ACCOUNTING CYCLE IS A COLLECTIVE PROCESS OF IDENTIFYING , ANALYZING AND RECORDING THE…

Q: What is the other name of purchases returns

A: Whenever inventory is being purchased in business for sale or for use in production and…

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: What is function of expense method?

A: Organisations can opt for either of the options to prepare and report the income statement. They are…

Q: In your own definition what is credit and what is collection

A: The businesses tend to conduct their operations not only on a cash basis but also on a credit basis.…

Q: What is meant by a line of credit?

A: Credit refers to the concept is being defined as the financial agreement where the borrowers receive…

Q: In what way do revenues and expenses differ from each other?

A: The difference between income and expenses is simple: income is the money your business takes in and…

Q: What is the extent of the assignment of credit? Explain

A: Assignment of credit is explained as under:

Q: What is noncommited and committed line of credit?

A:

Q: I don't understand how to record the charges to work in process. How do i calculate it

A: Work in process includes the intermediate goods which are yet to be finished in the manufacturing…

Q: what is not needed to produce a payment to a vendor

A: Accounts payable represents the due amounts which the corporation has to pay in the future either…

Q: What is line of credit?

A: Introduction: Usually, the word loan refers to a form of credit facility where a certain amount of…

Q: Why do proponents of LIFO argue that it provides a better match of revenue and expenses? Is there…

A: Because the costs of the most recent purchases are included in the cost of products sold, LIFO…

Q: What numbers are used to calculate revenue?

A: Revenue is the income earned by the organization. It is recorded in the income statement. revenue…

Q: What would be the reason a compony would overstate income

A: If the value of a business seems to be too good to be true, the business might have overstated their…