Under this concept a profit is earned only if the financial (or money) amount of the net assets at the end of the period exceeds the financial (or money) amount of net assets at the beginning of the period, after excluding any distributions to, and contributions from, owners during the period. Performance capital maintenance Financial capital m

Q: Identify the cash flow series associated with production or service over thelife of the asset?

A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…

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: How can we determine the period necessary to recover both the capitalinvestment and the cost of…

A: The Payback period (PBP) determines how long it would take a company to recover the investment. PBP…

Q: Managing current assets involves a trade-off between two types of costs. These costs are: Group of…

A: The objective of the question is to identify the two types of costs that are involved in the…

Q: Which should be subtracted from the net income when using the indirect method? A. Loss on sale of…

A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents…

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: Which of the following is included in computing the total gross income?  Incidental revenue Net…

A: Gross Income - It the amount of total income which includes from the other sources include operating…

Q: Explain the components of income from continuing operations.

A: Continuing operations: The portions of the business which are expected to operate in the future are…

Q: answer true or false: gains are increases in net assets from peripheral activities while revenues…

A: First of all we have to understand the meaning of peripheral activities: these are the activity…

Q: answer true or false: gains are increases in net assets from peripheral activities while revenues…

A: revenue is  generated from sale of goods or service. it is recurring in nature as it is generated…

Q: The return on total assets evaluates management's use of resources, essentially evaluating the…

A: Ratio analysis means where the various ratio can be found out with different name and meaning and…

Q: Working Capital definition and formula Receivables definition and formula Inventory definition and…

A: Financial Statement which comprises Statement of P&L and Balance Sheet is the end product of the…

Q: C. Assets

A: Revenue - Revenues are incomes and increase in the assets of the business . It can also be said as…

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

A: Introduction: Contingency relates to the actual situation in which there is a chance of making or…

Q: The flow of money or its equivalent produced by an asset dividends and interest a. investment b.…

A: An investment is defined as an asset or invested, which used in building the wealth as well as…

Q: The investment turnover is the ratio of   a. operating income to sales   b. sales to invested…

A: Investment is the amount invested in the assets. Turnover is the amount of sales.

Q: Working capital is an indication of the firm’s ________.A. asset utilizationB. amount of noncurrent…

A: Working capital (WC) seems to be a financial statistic that indicates the operating liquidity…

Q: Which of the following is a capital budgeting method? A. net present value B. inventory turnover…

A: Please find the answer to the above question below:

Q: What refers to the way the company’s assets are financed and includes both long-term as well as…

A: The company raises the finance from various sources, one of them is common stock. The investor who…

Q: Distinguish between the following measures of invested capital, and briefly explain when each should…

A:

Q: Short-term investment and long-term investment will be recorded in what type of financial statement…

A: Balance sheet refers to the one of the financial statement of a company which reflects the overall…

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

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: PROFITABILITY Solution and answer Interpretation Gross profit margin Operating profit margin Net…

A: Solution:- 1)Calculation of Gross profit margin as follows under:- Formula as follows under:-…

Q: Identify and discuss the two components of contributed capital

A: Contributed capital Contributed Capital is the price that the share holders have given to the…

Q: The modified internal rate of return (MRR) test is designed to address a limitation associated…

A: The question is asking about the limitation of the internal rate of return (IRR) that the modified…

Q: The current asset financing policy that calls for matching the maturities of assets with the…

A: The correct answer is "D. Self-liquidating approach"The self-liquidating approach matches current…

Q: Return on assets

A: Return on assets is computed as net income upon total assets of the company.

Q: If a company capitalizes costs that should be expensed, how is its income statement for the…

A: A capitalized cost seems to be an element that is added to the cost structure of a fixed asset on a…

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: Provide factor analysis: influence of the factors (Current Assets and Current Assets Turnover on…

A: Current ratio is a ratio which specifies about the ability of the company to pay-off their current…

Q: How to determine the percentage by which operating income can increase if the entire R&D expenditure…

A: Operating income is income of business from its normal operations  Percentage Change = (New Value -…

Q: Working Capital Management is concerned with management of Select one: a. Long term capital b.…

A: Working capital management helps to ensure smooth operations of the business.

Q: What is the first impact on asset turnover of promptly expensing a cash outlay compared to…

A: The Answer :

Q: Managing current assets involves a trade-off between two types of costs. These costs are: Group of…

A: The objective of the question is to identify the two types of costs involved in managing current…

Q: A decrease in accounts payable constitutes a/an _________ in net working capital and is considered…

A: Working capital is the difference between the current assets and current liabilities.

Q: Explain the following A.Accounting profit B.Taxable profit C.Deffered taxes

A: In accounting we come across different terms related to the subject of accountancy.   Each term has…

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: Balance Sheets show the Flow of Assets and Liabilities between one accounting period and another.…

A: Answer:- True Explanation:- Balance sheet is one of the most important financial statement of an…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.