Recently,two friends in Australia combined their monetary resources and formed a business.Regardless of the form of the business,at the time of the purchase via cash,an asset is recorded in the accounting records by both increasing the account for the asset purchased and decreasing the account for cash by the same amount because of the: A.Asset Recognition Principle B.Historical Cost Principle C.Dual effect of transactions D.Entity Concept E.Monetary Unit Concept

Q: Discuss the basic accounting problem that arises in handling each of the following situations. a.…

A:

Q: Which of the following statements regarding selling fixed assets for cash is NOT true?

A: Meaning of Fixed Assets Fixed assets are those assets which are used for a long term and are cannot…

Q: According to which concept all the transactions are measurable in the terms of money are recorded in…

A: THE MONEY MEASUREMENT CONCEPTS STATES THAT ONLY THOSE ACCOUNTING TRANSACTIONS ARE RECORDED WHICH CAN…

Q: Identify the asset from the following? A. Cash and Cash equivalents B. Creditors

A: Something that will or already has economic worth to a business is referred to as an asset. All…

Q: . Identifying assets, liabilities and capital. Here is a list of assets and liabilities and…

A: Lets understand the basics. Financial statement is divided into three major portions which are, (1)…

Q: increase asset, increase liability, decrease capital....)

A: ASSETS.  ASSETS IS ANYTHING THAT CAN BE  OWNED OR CONTROL AND GENERATES OR WILL GENERATES AN…

Q: Give one word or a term used to describe the following:  a) An allowance by a creditor to debtor for…

A: Answer:-  Creditor meaning:- A creditor is a person or organization that offers another party credit…

Q: 3) Wilson Company recognizes revenue in the period in which it records an asset for the related…

A: A) Economic entity: Accounting principle that treats the business as a separate entity from its…

Q: What part of the A=L +SE does expenses and revenues under and are they CR or DR balances? Expenses…

A: The accounting equation shows that sum of all assets= sum of liabilities + sum of owner's…

Q: What is the name of the accounting concept or principle that determines the amount initially entered…

A: Accounting for an entity is generally governed by various accounting concept that are generally…

Q: Which business transaction will affect the quick ratio?     a. Purchase a fixed asset with money…

A: The quick assets ratio is calculated as quick assets divided by current liabilities.

Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…

A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…

Q: The means by which individuals hold their claims on real assets in a well-developed economy are A)…

A: A financial asset is a liquid asset which, from either a legal right or ownership assertion,…

Q: Which information is reflected in the capital account of the balance of payments?  a. Purchases and…

A: Balance of Payment (BOP) : The BOP is the details of all the international transaction that a county…

Q: Which one of the following is NOT an example of cash flow from operating activities? Select one: a.…

A:

Q: Activity Reason Effect Affects profit Operating Decrease Cash and loss

A:

Q: Which of the following is correct regarding cash basis of accounting? a. Sales include cash sales…

A: Under cash accounting, the incomes and expenses are recognised when they are received or paid and…

Q: 1. Realization of revenue occurs when a. the item is formally recorded and reported in the financial…

A: Realization Concept Realization concept in accounting, also known as revenue recognition principle,…

Q: What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Porite Company recognizes revenue in the period in which it records an asset for the related account…

A: Here the company records in the period in which it is earned rather than recording it when casflow…

Q: Assuming there is separate records maintained for the joint operation, compute for the Joint…

A: Joint venture is a business arrangement where 2 or more persons or entities agree to join hands for…

Q: Accounting recognition should be given to the gain realized on a non-monetary exchange of plant…

A: A non monetary exchange is subjected to the test to determine whether or not it has commercial…

Q: Please answer with reason 59..........is the withdrawal of cash and goods by the owner of the…

A: Owner may invest several cash and non cash assets into the business. In the same way, it can also…

Q: e journal entries for transactions (a) to (f). b. Compute for the profit after m

A: It is given that Case 1: No separate records are maintained.

Q: which is the effect of the following transaction on the basic accounting equation? Bought equitment…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…

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