Which one of the following recognises the idea that assets and income should not be overstated while liabilities and expenses should not be understated : A. Matching principle, B. Accrual concept, C. Principle of prudence. D. Consistency concept.

Q: Under the general rule of revenue recognition, revenue is recognized when Group of answer choices…

A: The revenue recognition principle says that we need to recognize the revenue at the time when goods…

Q: Information produced using fair value as the measurement base is considered:   I. More neutral.…

A: Answer:- Fair value method meaning:- When a buyer and a seller voluntarily agree on a price for an…

Q: Selecting the method or procedure that yields less net income is an application of Select one: O a…

A: Accounting principles are the set of rules and instructions which should be followed while preparing…

Q: Which one of the following statements regarding IFRS accounting for goodwill is correct: a. If…

A: Goodwill is calculates on business combination by subtracting net assets acquired from purchase…

Q: How do you view goodwill on the balance sheet - specifically, if certain levels of it would cause…

A: 1.) I see the goodwill on the balance sheet as synergies , which was estimated at the time of the…

Q: Which of the following is not considered a characteristic of a liability? O Present obligation. O…

A: Liability means the amount which is to be paid to an outsider by business.  It is the present…

Q: According to Topic 606, in order to have a contract with a customer on which revenue should be…

A: The concept of collectability refers to the likelihood of the company receiving payment from the…

Q: If the value of an item can be measured and reasonably determined, this item can be recognized in…

A: An item can be recognized in the financial statement if it satisfies certain specified condition.…

Q: Contrast a revenue/expense approach and an asset/liability approach to  accounting standard setting.

A: Revenue Expense approach recognizes Income statement items first Whereas, Asset/liability approach…

Q: What is the guiding objective is that lessees and lessors provide disclosures?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: QUESTION 1 Which of the following is not a behaviour bias? a. Prospect theory b. Conservatism C.…

A: Analysis of the given options: a) Prospect theory    ANALYSIS- Prospect theory finds application in…

Q: 2) expense, (3) loss as used for financial reporting in conformity with GAAP. In your explanation,…

A: 1. Cost:  Cost is the amount that is given in consideration of goods that are either received or are…

Q: Discuss the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

Q: Identify one similarity and one difference between revenues and gains. Why is this distinction…

A: Revenues are the total inflows of cash, receivables and other considerations arising from the…

Q: What are goods "in transit" and good in "consignment"? Why are they must be considered in light of…

A: The goods in transit are all such goods which has left the dock of seller and not yet reached the…

Q: Ethics of accruals and deferrals.

A: Lets understand the meaning of accrual and deferrals. Accrual is a recording income and expense in…

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: Which of the following best represents the matching principle criteria?A. Expenses are reported in…

A: Accounting principles are those rules and guidelines which helps the accountants all over the world…