Which of the following statements is incorrect?   A. Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities. B. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded. C. Adjusting entri

Q: When faced with uncertainty there is a need to exercise prudence. Which of the following would be…

A: PRUDENCE IS USALLY SEEN AS A VIRTUE . HOWEVER , IT CAN BE EXCESSIVE IF IT HAS AN UNREASONABLE IMPACT…

Q: Accumulated Depreciation is a permanent account. True False

A: Temporary accounts are those which are closed at the end of every period and not shown in the…

Q: Why does the recording of adjusting entries require a bet-ter understanding of the concepts of…

A: Routine revenue and expense transactions are transactions of normal sales, purchases or occurrence…

Q: Explain is a change in depreciation method a change in accounting principle, or is it a change in…

A: According to the Accounting Standard 1-  the change in the method of depreciation is a change in the…

Q: Which one of the following statement about encumbrance is correct? a. Encumbrances are equivalent to…

A: Encumbrances denote the estimated expenditures before the actual expenditure is occurred. It…

Q: Which of the following would NOT be reflected in the income statement?

A: Income statement- it is a part of financial statements prepared by the company that shows the…

Q: Want Answer please provide

A: To calculate the cash conversion cycle (CCC) for Ridge Company, we need to determine the three…

Q: What is the effect of omission of accrued income in assets at the end of the year of error? a.…

A: Accrued income: Increases assets Increases Owners' equity

Q: Explain the adjustments that may be made for the accounting discretions about the following:…

A: The accounting discretions refer to the choices and judgments made by accountants when preparing…

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

A: Answer: As per Q/A guidelines, first question is answered. Please repost the question to be answered…

Q: 3. Regarding the underlying conceptual basis of accounting for compensated absences, review the…

A: Compensated absences refer to paid time off provided to employees by their employer, such as…

Q: True or false The change in depreciation method is a change in accounting policy.

A: Introduction:- Accounting policies are the specific principles, rules and regulations. Which are…

Q: Prior-period adjustments can arise from

A: Prior period items are expenses or incomes which arise in the current period as a result of errors…

Q: The depreciation expense is generally estimated based on some assumption such as percentage of sales…

A: Depreciation can be defined as the reduction in the value of the asset over a period of time due to…

Q: The adjustment for accrued expense eliminates the understatement in

A: The correct answer is: (D) Owner’s equity  Accrued expenses are expenses that have been incurred,…

Q: When, at the end of an accounting period, a revenue has been recognized in the fi nancial statements…

A: Income accrued (also referred to as accrued assets) is income received by the client but not yet…

Q: What is the term for allocation of fixed assets to expense? * O bad debts expense O depreciation…

A: Introduction: Fixed Assets: The benefits from the assets are having more than one year called as…

Q: Choose the incorrect statement below:

A: The answer for the multiple choice question on choosing the incorrect statement and relevant…

Q: All of the following about expense recognition principle are false, except: Oa Itis the basis for…

A: Expense represents the amount spent by the corporation during a particular period for the objective…

Q: Which of the following techniques can be used by management to overstate long-lived assets? * A.…

A: Long lived assets are also known as Non-current assets which provides economic benefits for a period…

Q: a correction in the calculation of earnings per share of a prior period   a material difference…

A: Prior period adjustments are adjustments made to periods that are not current but have already been…

Q: If the adjusting entry is not made for unearned revenues, the result will be:   A. Overstate assets…

A: Unearned revenue: It can be defined as the revenue received in advance before rendering the goods or…

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

A: Answer:   Accounting error.

Q: Corrections of significant errors of past periods are charged or credited directly to the Retained…

A: Retained earnings comes under the head liabilities in the balance sheet .

Q: A decrease in an asset account is a:  A. Debit entry to the asset account B. Credit entry to the…

A: Assets are the resources that are owned by the entity for the purpose of using them to run the…

Q: Which of the following is an example of a contra account? expaantion for correct and incorrect a)…

A: A contra account is an account that is used to offset or reduce the balance of another related…

Q: Which one of these statements is true of the accumulated depreciation account? O the account is to…

A: Accumulated depreciation is the total of depreciation applied on a fixed asset on a particular point…

Q: The updating of accounts when financial statements are prepared is called the adjusting process.…

A: Financial Statements are prepared at the end of the period to calculate the gains/losses and the…

Q: ous period’s financial statements are called?

A: It is common to occur errors in the financial statements, but whenever it is found that errors have…

Q: true or false questions

A: Adjusting entries are prepared at the end of the year to accrue the revenues and expenses accrued…

Q: The Framework for Adjustments excludes which of the following? a. Cash Receipts b. Prepaid Expenses…

A: Journal Entry is the primary step to record the transaction in the books of accounts. Adjustment…

Q: Which of the following statements is correct about an adjusting entry?

A: Meaning of Adjusting entries;- According to accountancy adjusting entries are those journal entries…

Q: Revenues and expenses should be recorded in the same period to which they relate.

A: Accrual accounting is an accounting method where revenues and expenses are recorded when a…

Q: The difference between deferred revenue and accrued revenue is that accrued revenue has been…

A: Revenue recognition: Revenue is recognized when the specific conditions or critical event occur.

Q: What is the effect of omission of accrued income in assets at the end of the year of error? O NO…

A: A basic Accounting equation is given as under;   Assets = Equity + Liabilities    Meaning,  Total…

Q: Is depreciation expense closed? If so, is it closed to income summary like the other expense…

A: Depreciation Expenses It's crucial to think about how long assets will keep worth as well as how to…

Q: What is the difference between Accumulated Depreciation and Depreciation expense?  What statements…

A: Accumulated Depreciation is a contra asset, it consists of the accumulated depreciation value since…

Q: If a payment of a deferred expense was recorded under the alternative treatment, what account would…

A: Deferred expense:   Advance payment for future expenses is called as prepaid expenses. These prepaid…