Which of the following items may be classified as nonoperating revenues and expenses?   Multiple Choice   Loss on the sale of equipment.   Interest revenue.   All of the other answers are classified as nonoperating revenues and expenses.   Interest expense.

Q: Which sentence is incorrect? Select one: a. Depreciation is not the actual change in the value of…

A: Depreciation expense is a non-cash expense, which is recorded on the income statement reflecting the…

Q: Excess of revenue over expense is O a. Profit O b. Loss O C. Asset O d. Revenue

A: Revenue is the amount received from selling or transferring goods and services from the business to…

Q: Under this concept a profit is earned only if the financial (or money) amount of the net assets at…

A: The financial capital maintenance conception is that the capital of a corporation is barely…

Q: amount of the financial asset shall be: 2 points   a. Recognized in other comprehensive income for…

A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: Which of the following concepts is violated when measuring inventories at the lower of cost and net…

A: Solution: As per  historical cost concept, in accounting value of an assets is recorded at original…

Q: Which of the following events could not coincide with the recognition of an expense? O The…

A: Expenses means the amount spent on running the business. Expense will decrease our profits and shown…

Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…

A: Outstanding expenses are those expenses which have been incurred during the period but not yet paid.…

Q: When recognizing revenue, a company has satisfied its performance obligation when the company has O…

A: The concept of Revenue recognition applies to both goods and services.

Q: Which cost incurred on equipment does not belong to the group?   Freight on acquisition of…

A: The total cost of acquisition of non cash assets include the acquisition price, freight charges,…

Q: 6. Bond usually sell at a premium: 2 points   a. None of the cases. b. When the stated rate of…

A: Option b is correct.

Q: Which of the following expenditure is not capital expenditure for equipment? a. Assembly b. Testing…

A: Capital expenditure for a equipment are the cost associated with equipment until it is put to use.

Q: under the cost recovery method of revenue recognition, a. Income is recognized immediately b. Income…

A: Cost recovery method of recognition of revenue is used when there exists substantial doubt regarding…

Q: The accounting treatment of depreciation is not recorded in.. Receipt-Payment A/C All of the above…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Which of the following is reported as other comprehensive income in accordance with PAS 1,…

A: Lets understand the basics. As per PAS 1 "Presentation of financial statement", following items…

Q: The profit or loss section or the statement of profit or loss shall include the following line…

A: Lets understand the basics. This question deals with the PAS 1. In this standard it is specified…

Q: Loss contingencies are usually recognized in the income statements of the period when     a.…

A: Solution; Loss contingencies are usually recognized in the income statements of the period when…

Q: the principal difference between depreciation and most other types of expenses is that

A: FIXED asset is a tangible asset that is owned by the business and have life more than one year .This…

Q: Question 1 Which of the following is not correct in relation to the reversal of an impairment loss…

A: Step 1 Impairment of the assets means the downward revaluation of the assets; whenever the carrying…

Q: The historical cost principle provides that: Select one: O a. the recorded amount of an acquired…

A: Accounting principles are the rules required to be followed by the company in the process of…

Q: The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed…

A: The loss of impairment is recognized in the income account and the reversal of the impairment loss…

Q: Accumulated Depreciation is: Multiple Choice A contra-asset account A liability An expense account A…

A: Depreciation expense is the amount a firm's assets are depreciated for a single month, whereas…

Q: Which of the following is treated as business expense?  a. Installation cost of business equipment…

A: Business expenses are the expenses which are incurred for the business and required for the…

Q: Which of the following is the correct calculation of book value? a. Cost - Impairment expense b.…

A: Book value (B.V) is the worth of the asset at a specified date.

Q: How to determine the percentage by which operating income can increase if the entire R&D expenditure…

A: Operating income is income of business from its normal operations  Percentage Change = (New Value -…

Q: Which of the following is not included in the computation of profit or loss? Interest Expense on…

A: Employee benefits It is the  consideration provided  by business  to employees  in exchange for…

Q: How should the assets and liabilities of a disposal group held for sale be reported? A. The assets…

A: A disposal group is a group of assets and liabilities that are proposed to be sold off or discarded…

Q: Which of the following statements is correct regarding income reporting under IFRS?(a) IFRS does not…

A: The correct option is C. For reporting income under IFRS, companies have to classify its expenses…

Q: Which of the following expenditures cannot be included in R&D costs? a. indirect costs b.…

A: R & D: R & D means Research and Development which indicates as a process of obtaining new…

Q: The realization principle underlies the accounting practices of depreciating plant assets and…

A: The realization principle underlies the accounting practices of depreciating plant assets and…

Q: Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers…

A: There are two type of costs treatments that are being done on all type of costs being incurred. One…

Q: Which of the following is used when computing for the accounting rate of return (ARR)? a. Income…

A: The accounting rate of return is the average net income an asset is expected to generate on the…

Q: Under the U.S.​ GAAP, which of the following is not an approach used to determine when to report an​…

A: The U.S. GAAP are accounting policies followed by US companies for financial reporting purposes.

Q: For financial accounting purposes, depreciation expense represents the decreasein an asset's fair…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Under IFRS, the initial revaluation of equipment when book value exceeds fair value results in a. An…

A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…

Q: The amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b.…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: judgement

A: Answered:

Q: Which statement below best describes when to record an expense? When the expense is paid.   When…

A: The income statement is prepared to record revenue and expenses incurred during the period.

Q: When is revenue recognized in the following situations?(a) Revenue from selling products, (b)…

A:

Q: In determining the value in use, which of the following cash flow is excluded from the computation?…

A: As per provisions of IFRS, the value in use is used for the purpose of impairment of asset. If the…

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Accounting is not as precise and objective as it is sometimes portrayed as being. There are areas…

A: Depreciation Expense is nothing but an apportionment of cost of fixed assets that are appropriate to…

Q: While calculating operating profit which will not be added back to net profit a. Preliminary…

A: Solution:- While calculating operating profit the following item will not be added back to net…

Q: The profit or loss section or the statement of profit or loss shall include the following line…

A: Solution 8:  The profit or loss section or the statement of profit or loss shall include the…