Which of the following is not a working capital requirement? O a. To pay wages and salaries to labour and employees O b. To purchase machinery and furniture, etc O c. To meet the short-term obligation O d. None of these

Q: A resource owned by the business with purpose of using it for generating future profit, is known as…

A: Assets: Anything of worth or a resource of value that may be turned into cash is referred to as an…

Q: What is the basic idea of zero working capital, and how is workingcapital defined for this purpose?

A: Zero working capital is a condition in which the current assets of the company balance exactly with…

Q: Which of the following statements regarding the recognition of expenses related to long-term…

A: Recognition of expenses in accounting refers to the process of recording and reporting the costs…

Q: According to FASB Statement No. 34, interest must be capitalized for a. Assets that are ready for…

A: FASB Statement no. 34 provides provisions related to capitalization of interest costs on borrowings.…

Q: The fact that workers are unable to meet a property determined direct labor standard is sutfidient…

A: Standards are the expected performance which is required to be achieved or could be achieved with…

Q: Which of the following does define investment property? a. Property held to earn rentals b. Right…

A: An investment property is first valued at its purchase price. The lower of the fair value of the…

Q: What is the net effect of the foreclosing entries on the balance of the owner's capital account?

A: Owner’s capital account is the one that shows the net amount that the owner has invested in the…

Q: Cost recovery can be .18 related to capital maintenance

A: Cost recovery can be related to capital maintenance.  Because both cost recovery and capital…

Q: Which of the following are classified as capital assets or expenditures? Purchase of goods Cost of…

A: Capital expenditures are usually non-recurring expenses whose cost is spread over the period of…

Q: How can an Investment be considered a liability since the company is forced to put resources into…

A: An investment can be considered a liability for a company when the company is forced to put…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: How can you explain working capital management? Explain different policies/approaches to manage…

A: The working capital is the capital that is used in the business for successful running of day to day…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: Property plant and machinery are the fixed assets of the company which helps in production process.…

Q: Which of the following costs are capitalized when purchasing a piece of equipment? a. The invoiced…

A: As per IAS 16 when a asset is purchased then capitalize any costs directly attributable to bringing…

Q: The crucial reason for determining whether an item is deductible as an ex­pense under § 162 or under…

A: The internal Revenue Code § 212 (26 U.S.C. § 212) gives a deduction, for U.S. government annual duty…

Q: what is an example of a specific wage concession in the recent past?

A: In the past few years, there have been a number of specific wage concessions made by various…

Q: When must a company recognize an asset retirementobligation?

A:

Q: Which statement is true when the outcome of construction contract cannot be estimated reliably?…

A: As per AS-7, the accounting treatment of construction contract with respect to recognition of…

Q: In a case of low value asset exemption, rent paid in advance by the lessee should be treated as O…

A: Rent paid in Advance by the lessee shall be classified as Prepaid Rent.. Option Prepaid Rent is…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: A company's physical or tangible long-term assets having a life of at least one year are referred to…

Q: One financial accounting issue encountered when a companyconstructs its own plant is whether the…

A:

Q: _______ of a project are those that will occur whether a company accepts or rejects a project.…

A: Sunk cost is the cost of project which was already incurred by the company before starting the…

Q: Problem 1-45 (Static) Cost Data for Managerial Purposes (LO 1-3) [The following information applies…

A: Answer:- Differential cost:- Cost accounting uses the financial concept of differential cost, often…

Q: Is it possible for costs such as salaries or depreciation to end up as assets on the balance…

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: Any anticipated loss should be recognized * A.on a percentage basis during the contract period B.…

A: The amount of anticipated loss is calculated regardless of: (a) whether or not work on the contract…

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: Accounting Which statement is false? Accounting for asset retirement obligations (ARO) apply to both…

A: The given question asked about the correctness of the statement.    Assets retirement obligations:…

Q: Why must the Engineers consider the effective use of fixed capital assets?

A: Engineer indulge in numerous process of decision-making such as manufacturing, financing, and…

Q: Can a project generate a negative taxable income for an operation firm?

A: A company that reports net income but negative cash from operations is attributable to a bad cash…

Q: How do tax laws affect leasing?

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: Which of the following should be capitalized when a pieceof production equipment is acquired for a…

A:

Q: When should an expenditure be recorded as an asset rather than an expense? O Never O When future…

A: Lets understand the basics.When any expense which is going to have future benefits needs to…

Q: Define zero working capital target

A: Companies always thrive to maintain the optimum working capital such that it’s business activity…

Q: 13. Fees for managing and protecting a customer"s property is considered under category interest…

A: This question deals with the selection of accounting head in which fees for the managing and…

Q: Revenues Costs: Variable cost of goods sold Variable selling and administrative expenses

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: 1. How do we decide whether to capitalize (record as an asset) or expense a particular cost? 2.…

A: ANSWER   Cost: The cost of the long-lived assets refers to all the expenditures made in order to…

Q: Which of the following is not an example of a fixed cost   A.Salaries of staff   b. Direct…

A: A fixed cost is a type of cost which does not change with the change in level of activity and will…

Q: Royalty income requiring considerable effort to earn the income is typically treated as a.…

A: Answer for the above question is b. Royalty income requiring considerable effort to earn the income…

Q: What is the common characteristic of all the assets owned by a company? A. Intangible B. Long Life…

A: Assets are resources owned by a company that hold economic value and are expected to provide future…

Q: In light of your study of the main conditions mentioned in the definition, mention why are or are…

A: An asset is a resource with the financial worth that an individual, enterprise, or nation possesses…

Q: Which of the following types of subsequent expenses is not normally capitalized? Improvements…

A: ALL THE EXPENSES INCURRED ON AN ASSET WHICH WILL INCREASES THE OUTPUT ARE TO BE CAPITALIZED AND DAY…

Q: How do the accounting treatment of capital expenditures differ from thetreatment of manufacturing…

A: Capital expenditures are those expenditures which will provide benefit to the business in future…

Q: What is the difference between 'working capital' and the 'current ratio'?

A: Current assets are assets in the form of cash or can be converted into cash within a year.Current…

Q: Long term liabilities are usually associated with -purchase of a building -purchase of equipment…

A: Long term liabilities: These include all the obligations and debts that the company owes for a…