a premium is purchased by an entity, the effect in the assets section would be

Q: one or more of the following statements are characteristics of assets: a. a probable future benefit…

A: Assets are those resources whether tangible or intangible, current or fixed have an economic value…

Q: What are the criteria of an assets held for sale?

A: Step 1   If any of the assets is held for sale then, it ceases to depreciation and amortization and…

Q: Reversing entries maybe used in unearned income when the original 1 point collection is recorded as…

A: Answer In a business unearned income record as a assets instead of a liability.

Q: Explain the difference between upstream and downstream intra entity transfers and how each affects…

A: In simple terms, downstream transfers or transactions follows a flow from the parent organization to…

Q: how is the acquisition cost of an asset determined when the asset is acquired in exchange for…

A: How is the acquisition cost of an asset determined when the asset is acquired in exchange for…

Q: Expenditures may be either capitalized or expensed. When Expenditure is capitalized it means that:…

A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: distinguish between current and non-current assets, and current and non-current liabilitie

A: Any asset which is convertible in terms of cash within a time duration of one year is a current…

Q: A currently maturing obligation of the entity is classified on the SFP as a?

A: Here SFP stands for statement of financial position. In a SFP different assets and liabilities are…

Q: Discuss the appropriate treatment in the income statement for the following items: a.    Loss on…

A: Income statement:   In this statement, the financial records of the company's monetary performance…

Q: When a fixed asset is sold, how is the transaction recorded?

A: Journal entries are used to record the financial transaction into the book of accounts.

Q: Th e assumption that an entity will continue to operate for the foreseeable future is called: A .…

A: There are two important underlying assumptions of financial statements: 1. Accrual basis 2. Going…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when *…

A: Borrowing costs are costs that are incurred for borrowing money for the purpose of acquisition,…

Q: When a fixed asset is sold, what type of accounting entry is made?

A: Fixed asset is an tangible asset,non current asset.

Q: Which of the following term relates to Copyrights, Patents and Trademarks? O a. Investments O b.…

A: Intangible assets are those assets which do not have any physical existence and it's very difficult…

Q: Borrowing costs that are directly attributable to the acquisition or construction of a qualifying…

A: Ans. Borrowing costs that are directly attributable to the acquisition or construction of a…

Q: Question 3. Classify each of the following accounts as (a) asset, (b) liability, or (c) equity.…

A: Assets means resources that the business have. It may be tangible resources or intangible resources.…

Q: Provide examples of assets that do not qualify for interest capitalization.

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: The amount due from or at the direction of the grantor is accounted for by the operator from the…

A: When the operator recieves a financial asset from the grantor, it is measured at fair value.

Q: What costs are included when capitalizing an asset on the balance sheet

A: Capital expenditure are those expenditure that have enduring benefits and will be capitalised if the…

Q: What are §1031 like-kind exchanges? And, what are qualifying assets? Please provide some examples.

A: IRC Sec 1031 gives us an exception and also provides the tax payers to defer payment of tax on gains…

Q: Valuation is applied to this specific object so that a proper computation of rental charges can be…

A: It's true valuation is made of some object like building, office, machines or land etc. All these…

Q: Explain the adjustments made in the equity method when the fair value of the net assets underlying…

A: When a company follows equity method when it has significant influence over such company.The…

Q: How is an available-for-sale investment recorded on the financial statements? At fair market value…

A: Available for sale investment are recorded at Fair Market Value in the balance sheet.

Q: Explain with relevant examples  1. Primary Apportionment

A: Primary Apportionment is a concept related to the allocation and apportionment of overhead costs to…