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

Q: Describe the accounting for actuarial gains and losses

A: Actuarial Gains and losses arises due to the difference in the pension payment made by the employer…

Q: Explain what is meant by: The benefits of accounting information must exceed the costs.

A:

Q: . How are the balance sheet and the income statement related to one another? How would youexplain to…

A: The balance sheet and income statement are related to one another by double entry system. Each entry…

Q: What is needed to solve a Return on Assets? Balance sheet only or Balance Sheet with Income…

A: Business needs and calculates various type of ratios in its business. These ratios are meant for…

Q: Applying a measurement basis to an asset or liability creates a measure for that asset or liability…

A: The purpose of measurement basis is to represent faithfully the values of assets and liabilities so…

Q: Explain the income & expenditure and Receipts & payment? Draw the format with example? What is the…

A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting…

Q: What element should be assessed when considering the quality of profit and loss and balance sheet.

A: The elements are as follows: Leverage is a measurement of the business's ability to meet long-term…

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Income statement is a part of financial statements which is prepared at the end of accounting…

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: asis accounting. Explain with examples?

A: Answer: Basis of differences Cash Basis Accrual Basis Types of transactions recorded Only cash…

Q: Which of the following best describes revenue?

A: In simple accounting term revenue is the amount which company earn by selling goods or providing…

Q: Explain the difference between profit and profitability.    Explain the concept of going concern…

A: Following are the difference between profit and profitability: Profit is an absolute figure that…

Q: Question 2 Considering whether to use historical cost or fair value relates to which of the…

A: Accounting Policies refer to specific accounting principles and methods of applying these principles…

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

Q: What is Fair Value Accounting? What are the factors contributing toward the trend of fair value…

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

Q: What is the criteria to recognize revenue?

A: Introduction: Taxes, customs charges, earnings from state-owned firms, capital revenues, and foreign…

Q: In accounting terms, what is the difference between profit and loss

A: Accounting is based on the principle of double-entry. It may be described as how a company records…

Q: Which of the following requires accounting information to be complete, neutral, and free from…

A: Accounting principles:   These are the assumption, concepts, and guidelines necessary to prepare and…

Q: Explain clearly how would you read a Balance Sheet and the statement of Profit and Loss.

A: Balance sheet and statement of profit and loss are the financial statements of a company. The…

Q: What transactions are included in income from continuing operations? Briefly explain why it is…

A: Income from continuing operations includes the revenue, expense, gain, and loss transactions that…

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: The purpose of a statement of retained earning is to ?

A: Statement of Retained earnings is prepared to show the details of changes occurred in equity over an…

Q: What is the aim of accounting, to put it in the broadest possible terms?

A: Introduction: A business's financial events and transactions may be summarized and recorded in…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: Definition of accounting, any improvement over the earlier definitions?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What type of basis is it called when we report only the amounts actually collected and/or spent?

A: There are two methods of accounting. One is cash basis and other is accrual basis.

Q: What is the major distinction (a) between revenues and gains and (b) between expenses and losses?

A: The major distinction between revenues and gains (or expenses and losses) depends on the typical…

Q: Which of the following sets includes only accounting assumptions and conventions? a. timeliness,…

A: b. matching, comparability, a period of time, and reliability c. the monetary unit, going concern,…

Q: Demonstration of the relationship between GAAP and accounting practices (e.g., matehing prineiple…

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: How are the balance sheet and income statement affected by fair value accounting?

A:

Q: How would a debit balance in Unrealized Gain (Loss) on Available-for-Sale Investments be reported in…

A: Unrealized Gains and Losses refer to the rise or decline in the paper value of the company's various…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: Which are the total interest expense in the statement of profit or loss?

A: Interest expense is the finance cost which is deducted from operating profit i.e. earnings before…

Q: The main purpose of the statement of profit or loss is to determine O the amount of income and…

A: A profit and loss statement is a financial statement that is prepared so as to determine the…

Q: Is profit an asset or liability?

A: profit or income are generally classified under assets.

Q: Service revenue belongs on which financial statement?

A: Service revenue is in the nature of Revenues account. Therefore, the Balance of Service revenues…

Q: whats the difference between an expense and liability according to accounting?

A: Accounting: Accounting is defined as recording, summarizing and classifying the financial…