TRUE or FALSE The cost should match with the revenue generated. It only means that with every income earned there is an expense given. This is called matching principle.

Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…

A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…

Q: When we reduce Total expenses from Revenue , the result is called as ........... a. Cost b. Revenues…

A: Revenues is the total receipts of the business irrespective of the cost incurred. Expenses are the…

Q: 1. When applying lower of cost or market, market value A. is defined as the selling price B.…

A: This Net realizable value(NRV) generally a common method used in valuation of an asset in inventory…

Q: The difference between revenues and expenses is net income. What is net income?

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Explain two reasons why uncontrollable costs are included in the income statement

A: Introduction:- Uncontrollable costs are cannot be avoided. Which are necessary for production of…

Q: Please explain the meaning of differential income.

A: Concept of differential is generally used when there are two or more alternatives to choose upon.…

Q: The increase in expenses and decrease in payables should be debited* O True O False

A: Expense accounts normally have debit balance and all payables normally have credit balance. For…

Q: Net Income or Net Profit a.Net Income is less than Net Profit b.Are the same c.Net Profit is the…

A: Net Income or Net profit means when all the expenses has been deducted and net amount is calculated.

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: The break-even point is where a.Revenues Costs. c.Revenues = Costs. d.Revenues = Fixed Costs.

A: Formula: Break even units = Fixed cost / Unit contribution margin.

Q: Which of the following equations expresses the definition of “income”?   Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: 1. How much is the gross profit? 2. How much is the administrative expense?

A: Gross profit is computed after deducting all operating expenses from the sales. The operating…

Q: Explain why proponents of LIFO argue that it provides a better match of revenue and expenses. In…

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: Leftover hypothesis of profit is relevant just when:    a. The expense of held income lower than…

A: The leftover hypothesis of Profit means remaining profit i.e. profit left over after paying all the…

Q: Which of the following best describes revenue?

A: In simple accounting term revenue is the amount which company earn by selling goods or providing…

Q: Accounting for all possible losses and expecting no profit is as per O a. Revenue recognition…

A: Answer : Option (C ) conservatism Principle

Q: Which statement is incorrect? A. Deferred income-beginning

A: Prepaid Expenses -: Prepaid Expenses are forthcoming expenditures that have been reimbursed in…

Q: The net income or net loss reported on the income statement must be the same as the net income or…

A: A Worksheet is a multi-column spreadsheet that contains the ending balances of all general ledger…

Q: Question 1: Determine whether each of the following statement is true or false, and correct the…

A: The income statement is prepared to find the net income or losses incurred during the period.

Q: Total deduction is always equal to net earnings true or false

A: The total amount of income earned during a period is referred to as gross earnings. However, gross…

Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco

A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of 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: A term that refers to a situation where the revenue function is equal to the cost function.

A: Revenue function and cost function are two important terms used in cost volume profit analysis. The…

Q: Why proponents of LIFO argue that it provides a better match of revenue and e expenses? In what…

A: Introduction:- FIFO and LIFO accounting are inventory management and financial accounting procedures…

Q: The increase in expenses and decrease in payables should be debited O True O False

A: While recording any business transaction in accounting form we enterd this amountin two side one is…

Q: rovide a rationale for the expense based on the given problem. Also, explain what is rationale since…

A: rationale means the valid reason for the action to be taken . In this case we need new laptop units…

Q: Among the general conditions for Musharakah the profit-sharing must be fixed amount Select one: True…

A: Answer

Q: Net income is used in calculating one's net worth. TRUE FALSE

A: Net worth provides an insight of an entity or an individual's incumbent financial position.

Q: Matching concept does not include one of the following:  a. The revenues of a particular period…

A: Accounting principles are the principles based on which accounting rules are set.  Lets understand…

Q: pute the effects on revenue, expenses, total assets, total liabilities and equity. Write NE for no…

A: Step 1 Accounting equation is based on Double entry system which is  formula is Assets = Liabilities…

Q: Under the historical cost accounting model the financial statement that is regarded as the most…

A: A financial statement is prepared by the management for users' decision making, it includes the…

Q: Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it…

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Multiple Choice broad and the income accounting period is too long. narrow and the income accounting…

A: Answer: Option B is the Correct answer i.e. narrow and the income accounting period is too short.

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 of the following statements about accounting income and economic income is (are) correct? I.…

A: Accounting profits includes explicit costs only, whereas economic profits includes both explicit and…

Q: Which of the following accounting principles or conventions is contradictory to the GAAP requirement…

A: As per matching principle of accounting, all expenses of a particular period are matched with the…

Q: Profit or Loss is computed by subtracting cost / expenses from – a. income/revenue c. sales b.…

A: Answer 1) Profit or Loss is computed by subtracting cost / expenses from: income/revenue: This…

Q: An expiration of cost which is incurred without compensation or return and is not absorbed as cost…

A: Answer for the below given question is, An expiration of cost which is incurred without compensation…

Q: Revenue Expenditures are Select one: O a. Short-life and must always be replaced to generate revenue…

A: The expenditures can be defined as revenue and capital expenditure.

Q: o our authors, define “gross profit" and provide an example.

A: Gross Profit is the margin that a business wanted to earn on selling the goods or service, its…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: To make predictions about costs and income, you must first classify costs by their behavior.…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Cost of…

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

Q: The costs in the second group are recorded as expenses, but those in the first group are…

A: The cost incurred by the second group is considered as the revenue expenditure of the company, these…

Q: If a company captúrales a cost that should have been expensed.... A. Expenses will be overstated and…

A: 1. Capital Expenditure - Capital Expenditure is incurred to acquired long term assets. Company…

Q: The main purpose of the statement of profit or loss is to determine O the amount of income and…

A: A profit and loss statement is a financial statement that is prepared so as to determine the…

Q: This concept states that income should be recognized when earned regardless of being received and…

A: Solution Concept Accrual an cash basis of accounting Under the accrual basis of accounting we…

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