the assumption that a single, identifiable unit must be accounted for in all * situations is referred to as the monetary unit going concern economic entity

Q: DEFINE credit policy

A: Credit policy is the set of policies governing a company’s credit sales, outstanding amounts;…

Q: Differentiate between the accrual method and cash method?

A: The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses…

Q: What are the differences between cash and accrual basis accounting? Provide an example of each

A: The financial statements can be prepared using various methods as accrual basis and cash basis…

Q: If the value of an item can be measured and reasonably determined, this item can be recognized in…

A: An item can be recognized in the financial statement if it satisfies certain specified condition.…

Q: Discuss the differences between cash basis accounting and accrual basis accounting. What are the…

A: The fundamental principle of accrual basis accounting is the matching principle, which aims to match…

Q: Define cash-basis net income.

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial…

Q: s a general rule, revenue is normally recognized when it is: a) Realizable and earned b)…

A: Revenue is very important for the company and revenue may be received now or may be realized later…

Q: Define each of the following terms:k. Accruals; trade credit

A: There are two types of systems in accounting, one is a cash system of accounting and the other is…

Q: financial assets generate net income to the economy, while real assets define the allocation of…

A: Financial assets are assets are liquid assets that can easily and quickly be converted into cash…

Q: what is meant by Working Capital and, the meanings of Receivables, Inventory and Payables?

A: Meaning of Working Capital  Working capital, also referred as net working capital (NWC), is the…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: What is meant by 'cash inflow' and 'cash outflow'?

A: Cash flow statement: Cash flow statement is a statement that reports the cash inflow in operating,…

Q: 6. Explain: "agency debt"

A: Agency debt refers to bonds that are issued by government-sponsored entities (GSEs) such as Fannie…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

Q: The monetary value charged to customers for the performance of services sold is called a(n) O asset…

A: Performance of service is the completion of service as per specification, They earn revenue for the…

Q: Each economic event or transaction will have a dual effect on financial position. Explain what is…

A: An event that has an impact on a business entity and results in transactions that can be quantified…