1.) A gain or loss from one of the following transactions should not be  included in determining income:   receipt of interest from bank deposits   sale of treasury shares   sale of plant and equipment   sale of product

Q: From a practical point of view, according to financial compliance, dividends must be: a)…

A: Dividend= profits distributed to the shareholders

Q: Equity

A: We know that  Assets = Liabilities + ShareHolders equity  That is assets of a business are made up…

Q: Identify whether a Debit or a Credit. 1. Which contra-asset account is an accumulated depreciation?…

A: The different accounts may have different balances classified as debit or credit.

Q: Which accounting principle requires that interest expense, or any expense for operations during a…

A: Since there are multiple question asked, Answer will be given for first question only, to get all…

Q: 5. Which of the following is a business asset?

A: Assets are resources that are controlled which results from prior transactions that are expected to…

Q: Describe the primary reasons that a company’s book value in the balance sheet does not equal its…

A: Balance sheet: This is a financial statement that reports a company’s resources (assets) and claims…

Q: Were there significant differences in performance between the two companies in terms of stock…

A: Financial ratios are based on the relationship between two financial line items.We use financial…

Q: What is true? a.EBIT and Operating Income are often used interchangeably b.If a firm records…

A: The classified income statement has various parameters such as Gross income, EBITDA, EBIT, and Net…

Q: What does the retained earnings account measure? a) Cash held by the company since its inception.…

A: Retained earnings are defined as the part of earnings that are retained by the company. These…

Q: The income from an equity method investee is reported on one line of the investor compa income…

A: Investment income in equity method is return on invested amount. It is treated as reduction in the…

Q: Interest Expense on Notes Payable is recorded with an increase to Interest Expense, which decreases…

A: The interest expense on notes payable would be recorded with an increase to interest expense, which…

Q: In Worldcom and Enron accounting scandal, they classified operating expenses as capital investments…

A: Capital investments: It refers to the investments of funds in the capital assets that have an…

Q: * ?Which one of the following is correct The term 'Sales' include the sales of fixed assets for cash…

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: When a company pays dividends a) the dividends account will be decreased with a debit. b) it doesn't…

A: >Dividends are the payments made to the stockholders for the amount invested by them in form of…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle           Going…

A: Accounting Assumption / Principles : These are the accounting rule which are applicable to prepare…

Q: The assumption indicates that a company will not be sold or liquidated in the near future. а.…

A: The going concern assumption indicates that a company will not be sold or liquidated in the near…

Q: At what amount will the following accounts appear on the consolidated financial statements? Note: Do…

A: The equity method pertains to adjustment of subsidiary financial statement results in the respective…

Q: m retained earningsi or the fact that

A: Retained earnings are part of equity of the owner. It is the income earned and retained in business.…

Q: On a corporate income statement, income from continuing operations a. will exceed net income. b.…

A: Income from continued operations is the income which is calculated after subtracting operating and…

Q: Why does debt decrease a company's Shareholders Equity in terms of journal entries? Is it because of…

A: Companies frequently utilize debt financing to generate funds for their operations, expansion, and…

Q: Fully explain Retained Earnings, Share Capital and Dividends. What are they? Why are they important…

A: Financial statements of a company have different line items and financial heads. For instance…

Q: Assets Б each

A: The right answer is option c Assets must equal Liabilities plus Shareholders' Equity.

Q: A receivable is an: Select one: a. amount to be received from individuals or companies in the…

A: Answer: Account receivable is an amount to be received from individuals or companies in the future…

Q: Which of the following items has no effect on the Accumulated Adjustments Account (AAA) of an S…

A: Cost of goods sold- The cost of goods sold is the cost of producing the goods that a business sells.…

Q: What is the effect of writing off of an uncollectible account to the working capital of a company?…

A: >Working Capital is the excess of Current Assets over Current Liabilities. >Account…

Q: Which of the following assumptions is embodied in the AFN equation? a. All balance sheet accounts…

A: AFN equation related to the additional fund needed , It is assumed that an increase in sales will…

Q: Which of the following statements is true? If a company reports net income on its income statement,…

A: As per the accrual concept of accounting, revenue should be recognized in the books of accounts when…

Q: Assets = Liabilities + (Owner, Capital - Owner, Withdrawal + Revenues - Expenses) 2.    What is a…

A: The question is related to Basic of Accounting and details are given.  Since you have posted a…

Q: Which of the following statements are incorrect: i) Net income represents cash available to pay…

A: Net income (NI) is computed by subtracting revenues from costs, interest, and taxes. NI is used to…

Q: 5. true? Which of the following statements concerning the income statement is not It can be called…

A: Income Statement - Income Statement is the statement that includes income earned and expense…

Q: If the allowance method is used, how does recording the recovery of an uncollectible account affect…

A: Solution: Recovery of uncollectible account is recorded by making two entries as under: 1.…

Q: Jasper Corp. collects payment on an accounts receivable balance. This transaction Select one: O a.…

A: Increase in assets should be debited and decrease in assets should be credited.

Q: What is Revaluation Reserve? A. Any cost that has not yet been charged to the expense B. The amount…

A: Revaluation reserve is a non-cash reserve created to reflect the true value of the asset when the…

Q: a) Recording the usage of supplies involves an increase in liabilities and a decrease i e b) The…

A: The answer is stated below:               Note: Answering the first three subparts as there are…

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: If a company operates at loss, it that accural accounting or cash basis accounting?

A: Accrued expenses means the expenses which has been due but not paid. As per accrual system of…

Q: Please answer the multiple choice questions with only simple explanation. Thankyou! 6.) Assets or…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: All the following activities are inflows to the company except. a. Decrease in any asset b. Decrease…

A: Cash inflows generally are a result of: Sale of Assets Sale of investments Issue of common stock,…

Q: Which of the statements are not true Select one: a. Financial Structure is part of Capital Structure…

A: Out of the above 5 options only one option is correct.

Q: Explain the two primary reasons that a company’s book value in the balance sheet does not equal its…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…