Briefly explain the concepts of temporary difference and permanent difference

Q: What is the differencebetween direct and indirect quotations?

A: Introduction: Exchange rate for a pair of currencies is quoted in two ways. They are, Direct quote,…

Q: What are the steps in solving problems involving partitive proportions?

A: In partitive proportion, at first it is to be understood that there is a relationship between the…

Q: Explain the dual purpose of closing process.

A: The closing entries serve to transfer the balances out of certain temporary accounts and into…

Q: What are the four distinct categories of adjustments?

A: Adjusting entries in accounting are made with a view to accurately reflect the expenses and income…

Q: the differences between Bonus and Goodwill Method and explain why Bonus Method is the preferred…

A: Step 1   When a new partner joins the partnership, they buy the old partners’ assets. This happens…

Q: What is the dual purpose of the closing process?

A: The closing entries enable the company to transfer the balances out of certain temporary accounts…

Q: In the phrase “end-of-period convention,” the word “period” refers to what?

A: Introduction: Revenues are the profits or benefits that one person is having, while costs are the…

Q: Define the term End-of-Period Convention?

A: Cash flows refer to the amount of cash that is either invested or received by the company during the…

Q: Use the docmposed ROE framework to provide possible reasons for this difference based on the figure…

A: Introduction Dupont anlysis: Dupont analysis tells about if we return on equity decomposed into…

Q: Explain the four Types of Adjustment Entries?

A: Adjusting entries are those entries which are passed at the end of the year to accurately record…

Q: Difference between physical units and equivalent units

A: Here, units mean the amount of goods in inventory like goods which are in progress, transferred…

Q: explain the meaning of permanent differences, and give two other examples

A: The periods between which revenues and expenses are reported for financial statement and income tax…

Q: Which of the following are permanent differences? (check all that apply)

A: A permanent difference is a difference between the tex expense and tax payable and it is never…

Q: Define adjustment entries and how they are passed?

A: Adjusting entries are those entries which are made at the end of the accounting period, to record…

Q: Define Temporary difference.

A: Definition:   Account: Account is the basic record that reports all changes in the value of…

Q: Explain the difference between the two types of subsequent events.

A: Subsequent events refers to events which occur after the end of reporting period but before…

Q: Difference of Perpetual and Peiodic

A: Perpetual:-It is the inventory management system that keeps the record of the inventory in…

Q: Explain the term differential analysis.

A: The term differential analysis is explained as follows:

Q: Differentiate between an originating temporary difference and a reversing difference.

A:

Q: Explain the difference between deferrals and accruals and give two examples from each.

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: How does accounting for permanent differences less complex than is accounting for temporary…

A: Temporary Difference:   A temporary difference is the difference of an income recognized under the…

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: The purpose of adjustments is to?

A: In simple words, adjusting entries are the changes to the journal entries that are already made in…

Q: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: what is the reconciling DIFFERENCE:

A: A bank reconciliation statement has been prepared to reconcile the balance as per pass book and…

Q: explain the difference between margin and markup

A: Margin can be defined as the amount that is derived by deducting Cost of goods sold from sales. that…

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: What do you mean by adjustment entries ?

A: A journal entry is being used to track a business transaction in a company's accounting records. A…

Q: Explain the difference between direct and indirect quotations.

A: The quotation is a document listing all the prices that are determined and fixed for a project. The…

Q: Describe about the deferrals? Explain it in detail.

A:

Q: a temporary difference

A: Deferred tax is the amount of tax owe by or to the tax payer arises out of the temporary differences…

Q: Concept of Reconcilation statement with an example .

A: A bank compromise proclamation is a synopsis of banking and business movement that accommodates an…

Q: With relevant examples, explain the following; i. Primary appointment and secondary apportionment…

A: Part i: When overheads are allocated to all divisions in the company (both manufacturing and service…

Q: What exactly are temporary differences? What types of transactions cause these differences?

A: Discrepancies among the carrying value of an asset or liability in the financial statements and its…

Q: Define the term conversion cost.

A: Conversion cost:  The cost of changing the materials into a finished product. It comprises direct…

Q: Discuss the concepts of duration and convexity.

A: Duration : Duration is the measure of sensitivity of a bond with respect to change in interest…

Q: Explain the difference between value-added time and nonvalue- added time.

A: Value-added time:-  Value added time is the time spent that improves the outcome of a method. this…

Q: What is indirect quotation.Explain with example

A: A quote is the most recent price at which an asset sold; it is the most recent price at which a…

Q: What is the definition of “retrospective application”?

A: The first book that the company will prepare is the journal book in which all the transactions of…

Q: Distinguish between direct material and indirect material.

A: Direct materials will be materials that are devoured during the creation of an item as either…