Determine the missing amount for each separate situation involving

Q: Describe the basic nature of the three expense recognition methods. Provide two examples of each.

A: Expense recognition is a principle according to which expenses should be recognised in the same…

Q: Describe how the FIFO method is different from the weighted-average method.

A: FIFO and weighted average method are the accounting tool for the inventory valuation. Under FIFO,…

Q: compensation in commodatum.

A: Commodatum is nothing but a roman law which states that commodatum is an agreement which is a type…

Q: Discuss the THREE uses of Trial Balance  and by providing example for each use of Trial Balance?

A: A trial balance is a schedule in which total of debit column is always equals to credit. If there is…

Q: Use practical example to discuss how double entry principle is applied in extracting a trial balance

A: Trial balance refers to the worksheet which helps in detecting the mathematical errors that have…

Q: How does Recognition Criteria answer the two questions 1) when should an event be recorded? AND 2)…

A: Under IFRS 15 and Topic 606 under US GAAP have laid down criteria for revenue recognition. There are…

Q: Give two examples of appraisal costs.

A: Appraisal costs are costs that are associated with the quality control process incurred by the…

Q: Describe direct and indirect mehods of reporting.

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Explain secondary apportionment with relevant examsples

A: Secondary Apportionment: In refers to the process in which the service department overhead is…

Q: What approaches might be used to decide the sequence in which to allocate support departments when…

A: Different approaches can be used to decide the sequence to allocate support department while using…

Q: Describe the different approaches of expense recognition.

A: Expenses are being recognized when the revenues and relevant expenses are matched for the same…

Q: explain the meaning of permanent differences, and give two other examples

A: The periods between which revenues and expenses are reported for financial statement and income tax…

Q: Explain the effect of compensating balance with example.

A: Compensating Balance Compensating Balance is refer as the minimum amount of the money which are…

Q: escribe a subsequent eve

A: A subsequent event is an event that take place after the balance sheet date but before before the…

Q: Define sacrificing ratio.

A: Definition of Sacrificing Ratio:Sacrificing ratio is the ratio where the old partner give their…

Q: Explain the difference between the two types of subsequent events.

A: Subsequent events refers to events which occur after the end of reporting period but before…

Q: Briefly explain the concepts of temporary difference and permanent difference

A:

Q: Define receivables and explain issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Differentiate between an originating temporary difference and a reversing difference.

A:

Q: Define receivables and understand issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Describe the accounting for correction of errors.

A: The accounting for correction of errors will be explained:

Q: Describe the Cost of Elimination.

A: Costing System - A costing system is created to keep track of the costs incurred as a result of the…

Q: Define a subsequent event.

A: Financial Statement: It refers to the annual reports of the company that is prepared at the end of…

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: Explain an example of deferred expense.

A:

Q: Expense recognition is implemented by one of four different approaches, depending on the nature of…

A:

Q: Define Deferred Payments.

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: Describe the accounting for correction of errors.

A: Accounting errors refer to the errors made while recording, classifying or summarizing accounting…

Q: describe the main differences between Vertical and Horizontal Analysis.

A: Vertical Analysis: In financial statements, vertical analysis refers to the approach of assessing…

Q: Explain what accruals and deferrals do and give examples of each.

A:

Q: Do equivalence calculations require a common time basis for comparison?

A: Answer: The calculation of equivalence method is used where duration of the projects is not equal.…

Q: How does the computation of equivalent units under the FIFO method differ from thecomputation of…

A: Equivalents units for production: The activity of a processing department in terms of fully…

Q: describe diff erent types of assets and liabilities and the measurement bases of each

A: Assets are worthy resources that business owns to get future benefits. They are fixed assets which…

Q: What do you mean by roll-forward procedure and rollover method? Difference between roll-forward…

A: Roll Forward Procedure The roll-forward process means checks that will be carried out in the…

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