The measurement principle requires that Oa. accounting principles meet the objectives of the Security and Exchange Commission Nb. business transactions be consistent with the objectives of the entity Oc. the Financial Accounting Standards Board be fair and unbiased in its deliberations over new accounting standards Od. amounts recorded in the financial statements be based on independently verifiable evidence

Q: What is concept of unearned revenue?

A: When a amount is received in advance for a service or goods and as on reporting date such service is…

Q: Please answer with reason for all why the option is correct and why the other options are incorrect…

A: Expense recognition principle is one of accounting principle being used in business. This says all…

Q: Q2: “Goodwill cannot be said to depreciate”. Explain the statement.

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: Explain how the § 179 immediate expensing deduction affects the computation of MACRS cost recovery.

A: Depreciation is defined as the accounting method implemented to allocate the cost of a long-term…

Q: What is the two criteria be satisfied before revenue can be recognized?

A: Revenue recognition principle:    Under the revenue recognition principle, revenue and incurrence of…

Q: Any cost that is avoidable is relevant for decision purposes. O A. True O B. False

A: Relevant costs are those costs that are affected by the specific management decision being…

Q: Define the term pure borrowing?

A: The term borrowing is defined as the amount received from another party with the agreement that the…

Q: True (t) or False (f) ______ The historical cost principle would be of limited usefulness if not…

A: Historical cost principle says that all assets and liabilities of business should be recorded at…

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

Q: What is a forward contract?

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: hat you are a financial manager at Sear and want to compare your firm’s situation with that of…

A: The current ratio refers to the type of liquidity ratio which evaluates the efficiency of a company…

Q: What is an onerous contract? Give two examples of an onerous contract.

A: When the cost of carrying out unavoidable obligations exceeds the benefit expected to be received…