Accounts payable 500,000 Accounts receivable 400,000 Accumulated depreciation - Property and equipment 100,000 Cash 500,000 Finished goods - December 31 Goods in process - December 31 Net Income for the current year Property and equipment 450,000 750,000 1,000,000 3,000,000 Raw materials - December 31 500,000

Q: Allowance for uncollectible account falls under what classification in a balance sheet?  Current…

A: Allowance for uncollectible Accounts: This is a contra asset account to the Accounts Receivables…

Q: What are two ways to calculate returns for a holding period?

A: It is also called as HPR, which states to the total returns during a period for which a investment…

Q: What is the classification of long term assets? Explain them.

A: Long-term assets: Long – term assets are those assets that are generally held by a company for more…

Q: Define Accrued liabilities.

A: Liability are the obligations owed by an organization to the outsiders. Liabilities are classified…

Q: how does the change in accounting of nonrecurring items?

A: Non Recurring items are the ones that do not occur frequently.

Q: Assets created by payments that expire as they are used are called?

A: The assets are resources that are owned by the individual or organization. The assets are in…

Q: What are the effects of depreciation on the profit and loss account and balance sheet?

A: INTRODUCTION: A depreciation plan or chart makes it easier for organizations to keep track of…

Q: Defention of Assets, liability, current assets, current liabilities

A: Definition of Assets, liability, current assets, current liabilities are given below,

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: 2. Which assets may be excluded from current assets?

A: Definition:   Current assets: The assets which could be converted into cash within one year like…

Q: How can the Gains and Losses on Depreciable Assets be determined?

A: For calculation of gains or losses on depreciable assets, written down value of the assets at the…

Q: Describe the relationship between expense recognition and long-term assets

A: Two kinds of expense recognition are related to long-term assets; These are: Capital & Revenue.

Q: When a loss contingency is recognized, where is it reported on the income statement?

A: A financial statement that lists the company's earnings and expenses is called an income statement.…

Q: What are the long-term assets which do not have any physical existence? A. Intangible Assets B.…

A: Tangible Assets:These assets are physical, measurable Resources; like Property, Plant &…

Q: Describe the three different methods used to calculate the periodic depreciation allowances for…

A:

Q: Which one of the following category prepaid expenses belong to?

A: Current assets are the assets of the company that are expected to be consumed through standard…

Q: What are the differences between assets and expenses

A: Definition of Assets: Properties or things owned by business

Q: What does the credit balance in the Accumulated Depreciation account represent?

A: The Accumulated Depreciation account is a contra-asset account that accumulates depreciation…

Q: 3. Which of the following items must be depreciated? A. Inventory B. Land C. Machinery D. Capital…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: Amount of money borrowed or invested on the origin date.

A: Initial Investment - Owner of the organization either borrowed money or invested their own fund to…

Q: What are four most commonly used methods of calculating depreciation for financial reporting…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is