TRUE OR FALSE   The main difference between the function and the nature of expense methods is the segregation of operating and non-operating items under the function of expense method.

Q: An example of an expense classifi cation by function is: B . interest expense

A: An example of an expense classification by function is

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…

Q: true or false The net defined benefit liability/asset that is presented in the balance sheet is the…

A: True. Net defined benefit liability /asset is the difference between Present Value of Defined…

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: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

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: Which of the following concepts is violated when measuring inventories at the lower of cost and net…

A: Solution: As per  historical cost concept, in accounting value of an assets is recorded at original…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: Direction: Choose the correct answer.  1. A provision is a. An event which is not recognized…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: In your own words explain the meaning of: a. differential revenue, b. differential cost, and c.…

A: In accounting, Differential means the difference between the two alternatives or two output levels,…

Q: Please explain the meaning of a differential revenue or a differential cost.

A:

Q: Define Miscellaneous expense.

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

Q: What controversy relates to the accounting for net operatingloss carryforwards?

A:

Q: Research and development costs are: a. expensed under GAAP. b. expensed under IFRS. c. expensed…

A:

Q: Describe the different approaches of expense recognition.

A: Expenses are being recognized when the revenues and relevant expenses are matched for the same…

Q: Explain how the § 179 immediate expensing deduction affects the computation of MACRS cost recovery

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: Problem 4: A piece of equipment used in a business has a first cost of P 50,000 and is expected to…

A:

Q: Loss contingencies are usually recognized in the income statements of the period when     a.…

A: Solution; Loss contingencies are usually recognized in the income statements of the period when…

Q: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

A: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

Q: Replacement cost represents the current cost to replace the assets at the current level of service…

A: Replacement cost refers to the cost that would be incurred to replace an asset with an identical or…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

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: Explain an example of deferred expense.

A:

Q: Non-performing assets are described as……………… *

A: Non-performing assets can be defined as those assets which do not generate revenue for a banking…

Q: Expense recognition is implemented by one of four different approaches, depending on the nature of…

A:

Q: a) Why are neutral expenes eliminated and imputed cost added to derivee cost from expenses

A: Deriving the cost from expenses is necessary to ascertain the exact cost incurred and to…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: An indirect cost for one cost object can be a direct cost for a different cost object. True False

A: Direct cost means the cost directly related with cost object and indirect cost means which can not…

Q: Overapplied FOH indicates that the applied FOH amount is greater than actual FOH amount. O True O…

A: FOH or factory overhead means the overhead incurred on the making of the goods. It is a product…

Q: Under PFRS 3    a. both direct and indirect costs are to be capitalized b. both direct and indirect…

A: Cost capitalization is a method in which all the expenses incurred on an asset(fixed) to make it…