1.This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to. A. Income Statement B. Balance Sheet

Q: The accounting equation is expressed as ________.A. Assets + Liabilities = Owner’s EquityB. Assets –…

A: Accounting equation is one of the important concept used in accounting. Three elements of accounting…

Q: Which one of the following represents the expanded basic accounting equation? Assets = Liabilities +…

A: solution : the correct answer is Assets + owners drawings + expenses = liabilities + owners capital…

Q: The profit or loss of the entity based from its current operation is required, under IAS 1…

A: Solution: Following are the four basic financial statements of the company: 1. Statement of…

Q: PFRS 9, Financial Instruments deals with the measurement and classification of which of the…

A: Financial Instruments deal with the measurement and classification of financial assets, Financial…

Q: Statement 1: The primary responsibility for the preparation and presentation of the financial…

A: Statement 1 True, The preparation and presentation of entities financial statements are the…

Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…

A: IAS 32 defines financial instrument as a "  contract that gives rise to a financial asset of one…

Q: Which statements are correct? Statement 1: Financial statements must be prepared by a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial asset is a liquid asset with a contractual right or ownership claim as its source of…

Q: be viewed as a going concern C. The financial statements are reliable D. Accounting policies are…

A: Only items that fit the definitions of an asset, a liability, or equity are recognised in the…

Q: 19. The totality of income and revenues at the disposal of the business entity is penpo s payable.…

A: Income and Revenues of the business are the financial resources of the business which are generated…

Q: Which of the following items appears in both the income statement and the statement of financial…

A: All the accounts in the books after being recorded as journal entries are transferred to one or many…

Q: • Define the following accounting concepts and explain for each their implications for the…

A: I am answering the first three sub-parts of the question as per bartleby guidelines. Please…

Q: 0. The following stat To meet the objective, financial statements should provide information about…

A: The answer is POINT 'B'

Q: Part A: Assets and liabilities are important elements of a company's financial position I. II.…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: 1. The accounting equation can be expressed as a. Assets + Liabilities = Shareholders' Equity b.…

A: Accounting equation, also known as basic accounting equation, provides the foundation for all…

Q: Accounting estimates are those adopted by an entity in preparing and presenting its financial…

A: Explanation: Accounting estimates is a approximate amount that is used for measurement when there is…

Q: That a business may only report activities on financial statements that are specifically related…

A: Accounting concepts are those rules and regulations which are used for the purpose of accounting and…

Q: these include debts, obligations to pay, and claims of the creditors on the assets of the business.…

A: The financial statements of the business includes the income statement and balance sheet. The…

Q: How does this following assumptions relevant in the preparation of an entity’s financial statements:…

A: Assumption means the assertion which we take while preparing the financial statements.

Q: Which of the following is not an accounting assumption? Select one: a. Integrity. b. Economic…

A:

Q: Choose only one answer. The term refers to the classification and aggregation on the face of the…

A: Financial statement means the trading and profit and loss account and balance sheet of the company…

Q: 4. An entity presents an analysis of expenses using a classification based on: a. The nature of…

A: Solution 4: As per IAS 1, "An entity presents an analysis of expenses using a classification based…

Q: The concept of verifiability is complied with when an accounting transaction occurs tha A. involves…

A: A. Involves an arm length transaction between two independent interests

Q: The International Accounting Standards Board’s Conceptual Framework for Financial Reporting  defines…

A: In general term, asset is anything which contains economic value and which can be converted into…

Q: Which of the following does IFRS 3 deal with? a) Consolidated accounts b) Equity accounting c)…

A: IFRS 3 is the standard for the accounting of business combinations like mergers, and acquisitions.

Q: related party transactions,

A: Option 1 is wrong because in case of related party transactions the business entity should disclose…

Q: Choose the letter of the correct answer.

A: Financial statements refer to the recording of the business activities in the written format…

Q: A statement that is prepared to know the changes in the capital of a sole proprietor is

A: The sole proprietorship is the most simplest form of business organization. A single person owns the…

Q: The following may be presented as current assets, except * A. Advances to shareholders, directors,…

A: Current assets: These include all the assets of the business that can be converted into cash within…

Q: In the process of applying the entity's accounting policies, management makes various judgments,'…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…

Q: which of the following is an accounting concept which serves as the basis for revenue and expense…

A: Accounting principles: Accounting principles are the conventions or rules that must be followed in…

Q: True or False _______ 1. Financial assets at amortized cost shall be measured at fair value through…

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

Q: 2. In 20x3, Entity A makes a rétrospecu accounting policy that has a material effect on the…

A: Financial Statements -: Financial Statements are the details of the entity's that provide financial…

Q: Define and explain the relationship between Assets, Liabilities, Equity, Revenues and Expens

A: Corporation - An organization that has been registered as a corporation under a corporation act has…

Q: AS I required that an entity prepare its financial statements (except cash flows statement) using…

A: Solution Concept IAS 1 is the standard related to presentation of the financial statements It…

Q: hich one of the following is ascertained from the income and expenses of an entity A. Financial…

A: The revenues and expenses for the company are included in the income statement of the company.

Q: ollowing is an accounting concept which serves as the basis for revenue and expense recognition :…

A:

Q: A financial instrument is any contract that gives rise to A financial asset A financial liability A…

A: Financial instruments in the business can be financial asset or financial liability. Financial asset…

Q: Which of the following statements are true regarding financial instruments? (i)  Financial…

A: A primary instrument is a financial asset whose price is determined solely by its market value.…

Q: Financial accounting prepares the general purpose statements profit and loss account and balance…

A: General Purpose Financial Statements: Financial statements intended for a wide range of users are…

Q: Which of the following is ascertained from the income and expenses of an entity? O A. financial…

A: Income statement means where all expenses and income are shown . Balance sheet means where all…

Q: Which is correct? 1   Income Statement shows the financial position of an entity. 2   Statement of…

A: Income statement- It is a statement that records all the receipts/ revenues and the expenditures…

Q: Under AASB101 Presentation of Financial Statements, which of the following items, if it exists, must…

A: Solution: Revenue, Share of profit of associates and cost of sales are temporary accounts that are…