What are the two most often used ways of accounting for revenue from by-products?

Q: What is meant by the following terms? You should provide an example of each to support your answer.…

A: Revenue Income: Revenue is the term used by any entity which earns income from its main operation…

Q: What is concept of unearned revenue?

A: When a amount is received in advance for a service or goods and as on reporting date such service is…

Q: Briefly explain the difference between gross profit, net profit and EBIT.

A: Gross Profit is computed by deducting Cost of goods sold from Sales. Gross profit is the profit a…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: What is the two criteria be satisfied before revenue can be recognized?

A: Revenue recognition principle:    Under the revenue recognition principle, revenue and incurrence of…

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: What are the differences between negative goodwill and positive goodwill, and how are they treated…

A: A company's brand, reputation, customer base, and other intangible elements are all valued as part…

Q: What is an accrued expense? Provide an example.

A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…

Q: In what ways does revenue recognition differ from other financial accounting procedures?

A: Definition: Every corporate entity should record revenues when they are generated, regardless of…

Q: What is the origin of the term "double accounting systems" for certain types of accounting?

A: This subject discusses the origins of the phrase "double accounting systems" for specific forms of…

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

Q: Explain the revenue recognition principle.

A: Accounting principle:

Q: What is the difference between a liability and an expense in accounting?

A: A company's future debt or obligation to a third party is known as a liability. This can include…

Q: When does sales revenue is recognized? When does sales revenue is recorded? Does recognize and…

A: The sales revenue is the amount of total sales made during the period.

Q: what are the concepts of revenue recognition?

A: Definition:   Revenue recognition principle: Revenue recognition principle states that every…

Q: What is the difference between the single-step and multiplestep income statement formats?

A: Income statement: It can be defined as one of the company’s financial statements that shows all the…

Q: How does Dropbox apply GAAP to revenue recognition? Explain and give examples.

A: Generally Accepted Accounting(GAAP) GAAP are a set of rules the encompass the details, complexities…

Q: What is "The units-of-output method" and "The staright-line method" in accounting? What are their…

A: Companies use tangible long term resources to perform daily operations and create revenue for its…

Q: Explain what is meant by the phrase matched with revenues

A: The term matched with revenues means to recognize expenses in the same period as the related…

Q: In what way do revenues and expenses differ from each other?

A: The difference between income and expenses is simple: income is the money your business takes in and…

Q: What is the purpose of valuation in terms of accounting?

A: Valuation is the technique of estimating and determining the fair price or value of a property such…

Q: accounting standerds

A: Accounting standards are standards for financial reporting. They’re the primary source of accounting…

Q: What is the transaction's profit

A: This question deals with the transaction's profit?

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: Is the matching of costs and revenue a basic accounting principle?

A: Accounting Principle: The set rules which defines the way account should be prepared is known…