Using practical example discuss why current asset is not seen not part of the income  statement

Q: A misstatement related to which of the following assertions means the dollar amount of the account…

A: Completeness represents that the financial statement of the company would be required to be…

Q: Trial Balance Question: What are some reasons as to why the trial balance may be…

A: Trial Balance: Trial balance is a financial statement that lists the balances of all general ledger…

Q: Choose the accounting change type and treatment for each of the following independent situations for…

A: Unless it is impractical to do so or another IFRS Standard specifies transitional rules, changes to…

Q: Which one of the following does not appear in the profit and loss account?

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: Which of the following accounting concepts states that before a transaction is recorded, sufficient…

A: Accounting concepts are fundamental guidelines and principles that help ensure consistency,…

Q: process of incorporating

A: Option a is wrong because one of the options is correct. Option b is wrong because de-recognition…

Q: Relevant definition or description is: a. Relevant financial information is capable of making a…

A: With the help of the financial statements, the financial status or position will be identified. The…

Q: Reversing entries has a great impact in the preparation of financial statements.TRUE OR FALSE

A: The book in which the company records all its transactions initially is termed as journal book. From…

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

A: Realisation Concept: Realisation concept assumes that revenue is recognized only when there is a…

Q: total revenue is incorrect

A: Total Revenue consist of  Revenue from Operation (Sales Revenue) Other Income (Interest Income,…

Q: The following statement describes an accounting concept. In conditions of uncertainty more…

A: Accounting Concept -A collection of broad rules known as accounting principles can be applied as…

Q: Could you possibly provide an additional situation that LIFO wouldn't be a better match for revenue…

A: Last-in, First-Out (FIFO): "First-In, First-Out" (also known as "FIFO") makes the assumption that…

Q: What is the purpose of the accounting?

A: Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions…

Q: What are three limitations of the income statement thatoften lead to misconceptions?

A:

Q: crease in revenue is on the credit side hence a decrease in expense is also on credit side   true…

A: Solution: Revenues have credit balance and expenses have debit balances. When Revenue is credited it…

Q: ndicate if it is an accounting mistake and provide an explanation for why it is or is not.

A: The Answer

Q: opic - Violation of Recognition, errors and intentional misstatements Question: Please explain and…

A: A "true and fair" financial statement refers to the presentation of financial information that is…

Q: The Accounting Cycle Question: What does it mean to adjust accounts for timing mismatches? What is…

A: Adjusting accounts for timing mismatches refers to the process of aligning the recognition of…

Q: What are interim reports? Why is a complete set of financial statements often not provided with…

A: Interim report: When the financial results are published for the year shorter than the fiscal year,…

Q: Management does not usually like to tie comprehensive income closely with the income statement.…

A: Comprehensive income offers a more thorough evaluation of a company's financial performance than net…

Q: Expenses recognized in the wrong accounting period: What does it mean when a company may delay…

A: Delaying the recognition of an expense by recording it as an asset is a common accounting practice…

Q: Ay 2. Discuss the importance of disclosing information and the potential benefits/pitfalls of not…

A: Disclosure of Information - Disclosure in financial terms would mean disclosing or presenting the…

Q: The use of the cumulative effect method to account for a change in accounting principle violates the…

A: Accounting principles are the set of rules which define the way accounts should be prepared and…

Q: Prospect theory is also referred to as? a. Overconfidence b, Loss aversion c. Mental accounting d.…

A: Prospect theory is an important theory in the field of behavioral finance. As per this theory people…

Q: For each of the following situations, indicate whether itrepresents an accounting error and explain…

A: Answer:   Accounting error.

Q: The form of asymmetric information that exists before a financial transaction is in place is while…

A: Adverse selection is an asymmetric information problem that occurs prior to a financial transaction…

Q: The framework for the Preparation and Presentation of Financial Statements includes an underlying…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: The date is January 1, 2018. Nomi Corporation issued 4,000 five-year bonds of 10% P1,000 face value,…

A: Issued  value of bonds = 4000 having  face value  = P1000 Number of bonds = 4000/1000 =4 bonds

Q: What accounting principle requires that revenues, and the related costs incurred to generate those…

A: Revenue: It is the amount of money earned by an entity by selling goods or providing…

Q: t is NOT necessary to prepare formal financial statements if a work sheet has been prepared because…

A: The objective of the question is to determine whether the preparation of formal financial statements…

Q: Analyze the effects of transactions on the accounting equation

A: The accounting equation is considered to be the foundation of the double-entry accounting system.…

Q: Which of the following statements about accounting income and economic income is (are) correct? I.…

A: Accounting profits includes explicit costs only, whereas economic profits includes both explicit and…

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

A: Accounting errors can occur for various reasons, and they can have significant implications for the…

Q: Name the error which was made under the following circumstances: The purchase of the machinery on…

A: When machinery is purchased on credit . Machinery account is debited. It's wrongly debited to…

Q: Which error cannot be revealed on the preparation of the trial balance? Wrong Totalling of account…

A: We have the following question: Which error cannot be revealed on the preparation of the trial…

Q: Which of the following best describes what we mean when we refer to the quality of financial…

A: A.  In light of the fact that a high-quality financial statement is more than simply presenting…

Q: How is accidental loss of goods treated in final account in case: a: Goods had not been insured or…

A: Accidental loss:   It is a loss incurred by a sudden or unexpected incident to the company. Accident…

Q: 7. The following statements are correct, except: Other comprehensive income comprises items of…

A: SOLUTION- FINANCIAL STATEMENT  ARE FORMAL RECORDS OF FINANCIAL ACTIVITIES AND POSITION OF A BUSINESS…

Q: roneously debited to Building of an account receivable by nonth was omitted. quisition of office…

A: Given table as,

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.