Define Adjustments

Q: Define Expenses

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

Q: Define Errors.

A: Accounting error means occurrence of mistakes which are committed while recording the transactions…

Q: Define Restoration costs.

A: Restoration means the act of renewing or repairing something.

Q: Define the term accrued expense.

A:

Q: revaluation result

A: If there is a revaluation surplus, it should be credited to other comprehensive income statement. If…

Q: Define add-on interest

A: Add-on interest It the approach used for computing the amount of rate of interest required to pay on…

Q: refinancing rate

A: The refinancing rate refers to the interest rate which is required to be paid by the banks when they…

Q: reorder level.

A: Reorder level = Average demand * Lead time

Q: 1. Define and briefly discuss a loss contingency.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Define Miscellaneous expense.

A: Step 1 Expense is the amount incurred by the organization to generate revenue. It is shown in the…

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: Define Temporary difference.

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

Q: Define sacrificing ratio.

A: Definition of Sacrificing Ratio:Sacrificing ratio is the ratio where the old partner give their…

Q: Define the term Loss Contingencies.

A: A loss contingency is incurred by the business based on the result of a future event, such as…

Q: Define Loss contingency.

A: A loss contingency gives the reader of the financial statements early warning of an impending…

Q: Define continuity assumption

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

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: Briefly explain the concepts of temporary difference and permanent difference

A:

Q: Define vesting period

A: Introduction: The concept of vesting is generally used in the concept of retirement planning…

Q: Define conversion ratio

A: Ratios are used in financial analysis to determine different aspects about the financial condition…

Q: Define adjusted present value approach (APV)

A: Introduction Adjusted present value is a valuation method introduced in 1974 by Stewart Myers.…

Q: entory Expens

A: Current ratio is ratio of current assets to current laibilties.

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: Compute for the adjusted balance of "DELIVERY EQUIPMENT

A: The question is related to Property, Plant and Equipment. The adjusted balance of delivery equipment…

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 compensating balance (CB)

A: Compensating balance is a minimum amount a borrower has to maintain with the lender. This is very…

Q: Define Exercise date

A: Introduction: Option is a financial derivative and a two party contract to swap some asset or item…

Q: Define time period concept.

A: Accounting principle: These are the guidelines which are to be applied while preparing the…

Q: Define the term effective rate.

A: The effective rate is the real return on a savings account or any interest-paying investment when…

Q: Define historical costs.

A: Historical cost principle: This is an accounting principle which states that the actual cost paid in…

Q: Define estimates.

A: Estimates are future predictions of something. For example at the beginning of the year a business…

Q: What is the correct amount of nventory?

A: Goods in transit, shipped at FOB shipping point are to be removed from inventory because they left…

Q: Define adjustment bureau

A: Adjustment bureaus generally operate under the laws of the federal government. These adjustment…

Q: Define devaluation

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

Q: onvention formula

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

Q: Balance of Deprec

A: A decrease in the value of an asset over a period of time / over a useful life is known as…

Q: Calculate modified duration using the information provided.

A: Modified duration is a measure used for finding the bond's price volatility. Modified duration is…

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: find the period of deferral in this problem

A: Payments are made every 3 years. First payment occurs after 9 years.

Q: Define compressed adjusted present value approach (CAPV)

A: Introduction: This question is related to concept of capital budgeting. Capital budgeting is an…

Q: Define Periodicity assumption.

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: Define aging schedule

A: Aging schedule It is the accounting table that indicates the accounts receivables of the company,…