A resource owned by the business with purpose of using it for generating future profit, is known as   Oa Capital   b. Asset   Oc. Liability   Od. Surplus

Q: Managing current assets involves a trade-off between two types of costs. These costs are: Group of…

A: The objective of the question is to identify the two types of costs that are involved in the…

Q: Which of the following does define investment property? a. Property held to earn rentals b. Right…

A: An investment property is first valued at its purchase price. The lower of the fair value of the…

Q: answer true or false: gains are increases in net assets from peripheral activities while revenues…

A: First of all we have to understand the meaning of peripheral activities: these are the activity…

Q: answer true or false: gains are increases in net assets from peripheral activities while revenues…

A: revenue is  generated from sale of goods or service. it is recurring in nature as it is generated…

Q: When recognizing revenue, a company has satisfied its performance obligation when the company has O…

A: The concept of Revenue recognition applies to both goods and services.

Q: What types of assets produce capital gains income when sold for a profit? A) Inventory B) Realized…

A: Lets understand the basics.Capital gain arise when capital asset gets sold to other party. It is a…

Q: Gain contingencies are usually recognized in the income statement when: a. realized…

A: Introduction: Contingency relates to the actual situation in which there is a chance of making or…

Q: Determining how to spread out the cost of a durable good over time is important for O Tax purposes…

A: Division of equivalent cost in the for the life of asset is known as spreading out cost which is…

Q: What are the after effects (both short term and long term) of capitalizing the cable costs of…

A: Capital expenditures (CapEx) are cash outlays made by a company to purchase, improve, and maintain…

Q: Intangible Assets Product development costs represent a considerable expenditure for companies. They…

A: a. Matching Principle: This principle dictates that expenses should be recognized in the same period…

Q: Working capital is an indication of the firm’s ________.A. asset utilizationB. amount of noncurrent…

A: Working capital (WC) seems to be a financial statistic that indicates the operating liquidity…

Q: Which one of the following is used as a criterion for deciding whether a resource should be regarded…

A: Assets:-All resources owned or controlled by a business are called assets.It is used to produce…

Q: oncept of capital maintenan -defines the level of profitabil

A: Capital maintenance: It is an accounting principle that says that a business should recognize its…

Q: Research and development costs a. Are recorded as research and development assets. b. Are…

A: Research and development costs: Research and development costs refer to the expenditures spent on…

Q: Define non operating investment assets.

A: A non-operating investment asset is a class of assets that are not essential to the ongoing…

Q: What refers to the way the company’s assets are financed and includes both long-term as well as…

A: The company raises the finance from various sources, one of them is common stock. The investor who…

Q: 2. Which of the following best explains the meaning of the term 'capital expenditure'. Capital…

A: Capital expenditure is the long term expenditure of the company.

Q: Explain briefly what working capital and working capital management are and what they do. Explain…

A: The financial Ratios will be calculated by taking the numerical values that are taken from the…

Q: Ac  Amortization Expense of Right of Use Asset Select one or more than one:   a. Normal balance…

A: The amortization expense of ROU (right-of-use) is to be shown under "Lease liability" in the income…

Q: When does a company record an asset related to a gain contingency? a. When future events will…

A: A contingency, in general, is an uncertain future event or condition that may result in a gain or a…

Q: The current asset financing policy that calls for matching the maturities of assets with the…

A: The correct answer is "D. Self-liquidating approach"The self-liquidating approach matches current…

Q: Depreciation is a process that involves: a. Increasing the value of assets b. Distributing the cost…

A: Expense is the amount of money incurred by the entity to run the daily operations of the business.…

Q: MODULE 4 HOMEWORK Please look at the following accounts and tell me what statement or statements…

A: Step 1: Gain on sale of equipment is the revenue received by selling the equipment. Such revenues…

Q: he purpose of depreciation expense

A: Depreciation is a measure of wearing out of assets from its use efflux over time or obsolete through…

Q: Working Capital Management is concerned with management of Select one: a. Long term capital b.…

A: Working capital management helps to ensure smooth operations of the business.

Q: Managing current assets involves a trade-off between two types of costs. These costs are: Group of…

A: The objective of the question is to identify the two types of costs involved in managing current…

Q: What is the name of the market where assets are bought or sold for "on the spot" delivery? Select…

A: In the given question we are given 4 options and we are required to choose one correct option.

Q: Matching Type   Equity. Intangible assets. Property, plant, and equipment Assets Resources of a…

A: Introduction:- A balance sheet is a statement of assets, liability, and equity. It is prepared after…

Q: Advantages and Disadvantages of 1. Other Investment Assets 2. Alternatives to Fixed Income and…

A: The investment assets are the avenues in which the investors can infuse their funds for getting some…

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: 1. If a Revaluation of an asset is done for the first time and there is a revaluation gain, this…

A: Income Statement - Income Statement is a financial statement that includes revenue earned and…

Q: What is the common characteristic of all the assets owned by a company? A. Intangible B. Long Life…

A: Assets are resources owned by a company that hold economic value and are expected to provide future…

Q: Identify an example of a non-current asset. O a. Machinery O b. Bank overdraft O c. Inventory d.…

A: Non-current asset refers to the asset which will not realize in cash within a year from the…

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: ich of the following is not a capital asset? a. Equipment -b. Vehicle c. Expenses -d. Building

A: Option C is the Correct answer.

Q: Capitalizing a cost means to record the cost into a(n) a. contributed capital. O b. asset. Oc.…

A: Capitalization represents the cost of an asset recorded over a period of time. Whereas, when the…

Q: monetary working capital

A: Working capital is the capital that keeps revolving around the business. This is the capital that…

Q: Choose when the profit is earned as a result of financial capital maintenance from the options…

A: As per Financial Capital Maintenance, a company earns a profit only if its net assets at the end of…

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: The term ‘Operating Profit’ means profit before _____ a. Interest b. Tax c. Interest and tax d.…

A: Formula: operating profit = Sales - Cost of goods sold - Operating expenses - Depreciation.