If the cash amount paid to satisfy the “Asset Retirement Obligation” (ARO) account balance is greater than the ARO balance, which of the following is true? A gain should be recorded A loss should be recorded Neither a gain nor a loss should be recorded

Q: What is the net effect of the foreclosing entries on the balance of the owner's capital account?

A: Owner’s capital account is the one that shows the net amount that the owner has invested in the…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: Which of the following is an accrued liability? * Unearned subscriptions revenue Current portion of…

A: Liabilities that are recorded in the balance sheet are of two types they are -  Current liabilities.…

Q: Interest expense

A: Interest expense paid on a loan which has prescribed is deductible from gross income of the payor…

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: Elements of gross income

A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

Q: The modified accrual basis ______. Multiple select question. What solution is it below? (A)…

A: Accrual basis and cash basis are two different methods of accounting used in financial reporting.…

Q: Income taxes payable is an example of an accrued liability. a. True b. False

A: The liabilities are the amount due to paid by the business in future period. The current liabilities…

Q: Which is the proper way to report a contingent asset? a. As an asset b. No disclosure and no accrua…

A: As per IAS 37, Provisions, contingent liabilities and contingent assets. A contingent asset arise…

Q: To arrive at the accumulated taxable income, which of the following items does not represent a…

A: The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net…

Q: How do the asset, revenue and expense accounts differ?

A: The assets and liabilities are posted in the balance sheet that shows the financial position of the…

Q: ________ is the interest earned on previously earned interest added to the principal.

A: Interest is the earned income on a given principal according to the given interest rate.

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: laxabie esent a positive adjustment? А. Capital loss carryovers В. Net operating loss deduction C.…

A: Here the question is regarding which is not a positive adjustment in computing the accumulated…

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: Record the entry to adjust asset values to fair value.

A: In this problem assets are revalued at a gain.  So the gain i.e difference…

Q: The difference between the carrying amount of a financial liability extinguished and the…

A: Liability means the amount which is to be paid to an outsider by business.

Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…

A: A transaction is a business engagement that has an economic effect on a financial statement and is…

Q: A statement of affairs measures a deficiency – traceable to unsecured creditors without priority –…

A:

Q: Why do we report gains and losses of fixed assets on the income statement when we sell our fixed…

A: the gain or loss on the sale of fixed assets is typically reported as a separate line item on the…

Q: Which of the following are not “non-cash” expenses? a) Depreciation expense b) Prepaid expense c)…

A: Non Cash Expense :— It is the expenses that are shown in income statement but does not involve cash…

Q: Net Capital gain is an item of income, while net capital loss is not an item of deduction. a.true…

A: Net capital gains is the gain that arises when the net long term capital gain is more than net short…