Gain contingencies are usually recognized in the income statemment when: a.realized b. occurance is reasonably possible and the amount can be reasonably estimated c. occurance is probable and the amount can be reasonably estimated d.the amount can be reasonably estimated

Q: Define each of the following terms:g. Market Value Added; Economic Value Added

A: We can define the terms as follows:

Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…

A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…

Q: Which of the following are recognized in other comprehensive income?       service cost

A: The other comprehensive income includes the revenues and expenses of the company. The assets and…

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

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Q: haat is the relationship between Income Measurement and Asset Valuation?

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A: The current costs is based on the purchasing of the latest products which means the having book…

Q: How does an “opportunity cost”,  subtracting from the revenue of an alternate course of action,…

A: Opportunity cost: Opportunity cost is a loss of income from one alternative if another alternative…

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A: Formula: Net Income = Total Revenues - Total Expenses

Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco

A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of the…

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Q: Briefly explain the concepts ‘Profit and loss, Other Comprehensive Income and Total Comprehensive…

A: Profit and loss: The profit and loss is a statement which is being prepared by the entities to know…

Q: Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’…

A: An asset is something which contains future economic value or future benefit.  A liability is…

Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…

A:

Q: Problem 2: ABC Company was formed on January 1, 2020. The entity reported the following financial…

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Q: allocation of income or loss to have economic effect

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Q: Which concept is applied to net income and other comprehensive income? A. Borrowed Capital B.…

A:

Q: How should changes in the estimated unguaranteedresidual value be handled by the lessor?

A:

Q: facilitates the comparison of financial noriod t moth

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Q: Distinguish between operating income and net income?

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A: What is net operating income approach, what are the assumptions of this approach. In what conditions…

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A: The question is related to Capital Budgeting.

Q: Required: Net income?

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Q: Explain the nature of net income, revenue, andexpenses.

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Q: 3. The following records were taken from the books of the Company and its branch on December 31,…

A: Home office branch Opening stock 115000 35600 (44500/125%) Add: purchases 820000   Add:…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.