1. Which of the following statements are correct? (1) Materiality means that only items having a physical existence may be recognised as assets. (2) The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. (3) The money measurement concept is that only items capable of being measured in monetary terms can be recognized in financial statements. A 2 only B 1, 2 and 3 C 1 only D 3 only Explain Why

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Q: Which of the following statements is correct? Please select the right answer.   US Standards are…

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Q: Which among the following is not a liquid asset Cash deposited in a bank O Stock O Bills receivable…

A: A liquid asset is the asset which can be quickly converted into cash.

Q: Please answer with reason for all why the option is correct and why the other options are…

A: Realisation Concept: Realisation concept assumes that revenue is recognized only when there is a…

Q: The two objectives of financial management are Select one: a. Assets and Liabilities b. Profit and…

A: The two objectives of financial management are optimum fund utilization optimum profits

Q: In what ways does revenue recognition differ from other financial accounting procedures?

A: Definition: Every corporate entity should record revenues when they are generated, regardless of…

Q: Statement 1: Investing and financing transactions which do not require the use of cash should be…

A: The aim of IAS 7 is to make it mandatory to present details about an entity's historical adjustments…

Q: QUESTION 2 Accounting for the exchange of assets depends on whether the transaction has commercial…

A: Introduction:An asset exchange is a type of transaction where two parties exchange assets or goods.…

Q: The following statement describes an accounting concept. In conditions of uncertainty more…

A: Accounting Concept -A collection of broad rules known as accounting principles can be applied as…

Q: /hich of the following statements is false? O a. Assets must always equal the sum of liabilities and…

A: Assets can be classified as current assets or long term assets and represented in the balance sheet.

Q: Is it true or not? An entity shall prepare all its financial statements, except the statement for…

A: An organisation can report revenue before obtaining payment for the products or services sold and…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: Indicate if the statement is TRUE or FALSE. Additionally, assess if the word "may" is the most…

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Q: Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as an…

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Q: What is the primary difference between cash and accrual accounting?

A: The business revenues and expenses can be recorded on the basis of cash or accrual.

Q: Which statement is incorrect? A. An entity shall report cash flows from operating activities either…

A: Cash flow statement is one of the four main financial statement. Cash flow statement shows the…

Q: These are conditions required by IFRS 9 for notes and accounts receivable to be measured at…

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Q: 2. Under FASB Statement of Financial Accounting Concepts No. 6, liabilities include a. only legal…

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Q: 1(a) State with reason whether the following statements are true or false (iii) Net Profit is…

A: Following is the answer to the given question

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Q: Please answer with reason for all why the option is correct and why the other options are…

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Q: TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT. 1. The cash…

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Q: Which of the following is the term commonly used to describe the practice of reporting the net…

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A: A cash flow statement is a type of statement that records every cash related transaction that is…

Q: Which of the following items should not appear on the Cash Flow Statement

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Q: Identify and explain the four possible measurement bases?

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A: Financial reports are finances of the company that are released in front on shareholders of the…

Q: 3. What is the Difference Between the Cash Basis and Accrual Basis of Accounting?

A: Cash Basis Accounting is a method where Revenue recorded only when cash is recieved and Expenses are…

Q: Which of the given options, is a limitation of financial reporting? (choose one answer only) a.…

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Q: Choose the letter of the correct answer.

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Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

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Q: Statement 1: The cash basis is appropriate for some smaller entities

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Q: Please answer if it is TRUE or FALSE

A: Answer:- true is the correct answer .

Q: e process of developing a reformulated Balance Sheet

A: Option 1 is wrong because the statement is correct. Derivative financial liabilities are the…