Question 7Which of the statements below regarding revenue expenditures is TRUE?а.Revenue expenditures include ordinary repairs.b.Revenue expenditures are those that are necessary to maintain good operating condition.с.Revenue expenditures are usually small and routine in nature.d.All of the above are true.A Moving to the next question prevents changes to this answer.

Expenditure means money spend by the company in order to carry on the business. These expenditures…

Answered: Which of the statements below regarding…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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27) Which one of the following category prepaid expenses belong to? a. Current asset b. Non-current asset c. Intangible asset d. Current liability
Kindly answer the following questions in problems 9-13 and 9-14.
I. The costs of uninsured hazards or claims for uninsured accidents during construction are regarded as administrative expense and never capitalized to the PPE item.. II. Subsequent expenditures incurred to extend the asset's capacity or efficiency are generally accounted as revenue expenditures. Select the correct response: Only the 1st statement is correct. Both statements are correct. Only the 2nd statement is correct. Both statements are incorrect.
41. Realization of revenue occurs when a. the item is formally recorded and reported in the financial statements b. noncash resources are converted into cash or rights to cash c. the actual exchange of noncash resources into cash С. d. when a transaction is both realized and realizable 42.A revenue recognition method that recognizes revenue before the time of sale is a. percentage-of-completion b. installment c. cost recovery d. point of sale С.
Argue that donated assets should not be reported in company’s balance sheet. Base your arguments on the conceptual framework.
Which of the following statements is most likely to be correct? Bad debts recovered account, if having an income tax benefit, is transferred to profit or loss summary account. A trial balance establishes the arithmetical accuracy of the accounting records. A well-maintained asset need not be depreciated. Drawing of goods by the owner should be debited to profit or loss summary account.
Discuss the concept of matching principle and its significance in determining the timing of revenue and expense recognition.
TRUE or FALSE Materality Concept Question 1. When it comes to determining the materiality of an amount, the accountant typically compares it to total assets, total liabilities, total expenses, etc.
Technically, offsetting in financial statements is accomplished when a. Gains or losses from disposal of non-current assets are reported by deducting from the proceeds the carrying amount of the assets and the related selling expenses. b. The accumulated depreciation is deducted from property, plant and equipment. c. The allowance for bad debts is deducted from accounts receivable. d. The total liabilities are deducted from total assets to arrive at net assets
Which statement below best describes when to record an expense? When the expense is paid. When the resource is consumed or a benefit is derived. Always taken in one period only. Never is recognized before revenue is recognized.
Accounting depreciation is sometimes referred to more generally as asset depreciation. True or false?

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