and rental incom

Q: e. What is the cost of leasing? Do r

A: Leasing Cost: It is the present value of the lease costs annually discounted at the borrowing cost.…

Q: Explain Leasing Commissions and Related Costs?

A: Answer: Leasing commissions: Leasing commission is nothing but fees or premium paid in the form of…

Q: What is asset and liability management?

A: The process of ALM (Asset and liability management) is the process used to manage financial risks…

Q: Define Prior service cost.

A:

Q: Define Expenses

A: Expenses are the cost that is incurred by the firm or the company to run the business. Basically,…

Q: Classify the Costs for Financial Statements?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Describe the environment related to leasing transactions.

A: Lease:

Q: Define the term transportation costs.

A: Cost: Cost is that amount which is paid to get something from the any supplier and the amount which…

Q: Define the term accrued expense.

A:

Q: Describe about concept of the GOODS ON CONSIGNMENT?

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: Characteristics of Retail Properties?

A: Alternative investment as an asset class is growing nowadays. People start diversification of their…

Q: Examples of transaction costs

A: Transaction costs are the costs which occur during buying or selling of services and goods. They are…

Q: Explain the term utilities expense and give an example.

A: Utilities Expenses are expenses incurred on public service utilities like electricity, sewage,…

Q: Define Net purchases.

A: Purchase discounts: The sellers offer a reduction in purchase price on initial purchases, to…

Q: Define Valuation allowance

A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…

Q: ests of interested pa e amounts in the ev formation and othe goods and services

A: The term entrepreneurship refers to starting a business by taking all the risks on the own in the…

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: D. Determine the billing price

A: Overhead means the cost incurred indirect in factory for the production of goods. Total cost placed…

Q: What is service cost, and what is the basis of its measurement?

A: Service cost: Actuarial present value of benefit attributed by the pension benefit formula to…

Q: Rental Income and

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Define Purchase return.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: How to Determine the Transaction Price?

A: Definition:   Transaction price: Transaction price refers to the price that a corporation receives…

Q: When is Leasing used?

A: Fixed assets are those type of assets which are being held by the business for longer period of…

Q: Define Expense recognition.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Define Sales revenue.

A:

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What is purchase returns?

A:

Q: bject:cost account

A: Cost of Production report states the cost per Equivalent unit produced and transferred and cost of…

Q: Define expense recognition principle

A: Expense recognition principle says that all expenses for the particular period must be recognized in…

Q: What is function of expense method?

A: Organisations can opt for either of the options to prepare and report the income statement. They are…

Q: Explain how to determine the transaction price.

A: Determination of transaction price is one of the step of revenue recognition process. The…

Q: What is a functional expense statement?

A: The answer is explained as follows:

Q: Define the term Purchase Volume?

A: INTRODUCTION Purchases  In accounting, the cost of making purchases during a time period with the…

Q: Define Accounts payable and what are its representative cost driver?

A: Accounts payable: Accounts payable is the obligation of the company to make payment (within period…

Q: Define Accretion expense.

A: Accretion expense is incurred due to the effluxion of time which is calculated on the basis of…

Q: Define Historical cost principle.

A:

Q: onvention formula

A: A day-count convention is used to calculate the interest accrues on different investments such as…

Q: Define Revenue

A: The revenue is reported on the income statement of the company, and it is used to derive the net…

Q: Define the term service revenue.

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: What is a fee income

A: Fee Income There are different ways an organisation can make the sources of income like sales…

Q: Define contra account

A: Financial Accounting: Financial Accounting can be defined as an activity of recording financial…

Q: Define purchase allowance

A: Following is the meaning of a purchase allowance