Define and explain multiple performance obligations.

Q: Which of the following best describes the current revenue recognition principle? Recognize revenue…

A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…

Q: The revenue recognition principle dictates that revenue be recognized in the accounting period…

A: The revenuerve recognition principle states that every business organization should recognize the…

Q: The statement 'revenue is recognized in the accounting period in which the performance obligation is…

A: The revenue recognition principal state that the the revenue should be recognised in books when the…

Q: What are the two general criteria that must be satisfied before a company can recognize revenue?

A: Definition:   Revenue recognition principle: Revenue recognition principle emphasizes, that the…

Q: Explain the following measurement bases of the elements of financial statements and indicate how…

A: Basis of accounting, is the way through which the various financial transactions are recorded in the…

Q: Which of the following facilitates the comparison of financial performance with one period to…

A: Financial performance can be compared if the business uses same policies and methods in all the…

Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption,…

A: “As only one item is given in the question, it is assumed this particular answer is asked by the…

Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…

A: Accounting Principles:   Accounting principles refers to the rules and guidelines that are to be…

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: The functional presentation of expenses in the income statement is usually shown by grouping into…

A: An income statement is one of the mandatory financial statements prepared by the company to…

Q: The functional presentation of expenses in the income statement is usually shown by grouping into…

A: Solution 1: True, The functional presentation of expenses in the income statement is usually shown…

Q: Which of the four basic accounting reports indicates thatit is appropriate to consider revenues and…

A: Four basic accounting reports are: Income Statement Balance Sheet Cash flow Statement Statement of…

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: Emoluments, pensions and gratuities, as well as debt service charges are categorized asdevelopment…

A: First of all we need to understand the basic meaning of Development expenditure. Development…

Q: Expenses on the income statement may be grouped by: A . nature, but not by function.

A: There are many ways in which income statement may be grouped. An income statement by nature is the…

Q: Describe the accounting when there is a right of return.

A: The right of return entitles a customer to a full or partial refund of the amount paid or a credit…

Q: Explain and evaluate the effects of capitalizing versus expensing costs in the period in which they…

A: Capitalization : When a company incurs any expense, benefit of which will be available for more than…

Q: . Distinguish between the modified all-inclusive income statement and the current operating…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: If a company capitalizes costs that should be expensed, how is its income statement for the…

A: A capitalized cost seems to be an element that is added to the cost structure of a fixed asset on a…

Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…

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

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…

Q: Describe the rules of accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Briefly explain the relationship between assets, liabilities, and revenue.

A: Assets is the tangible or Intangible factor in the business, which can be valued in terms of money…

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: Explain the basic features of Income and Expenditure Account and ofReceipt and Payment Account.

A: Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.

Q: Compare the essential features of each financial account statement to analyse the differences…

A: Journal-Journal is the original book of entry wherein financial transactions are recorded for the…

Q: Compare the essential features of each financial account statement to analyse the differences…

A: "As you have asked about the features, purpose and contents of financial account statements, I will…

Q: Choose the correct. How are anticipated administrative expenses reported on a statement of financial…

A: Statement of financial affairs:   Statement of financial affairs refers to a statement of assets and…

Q: Describe presentation and disclosure regarding revenue.

A: The core principle of IFRS 15 is that revenue is recognised when the goods or services are…

Q: Explain the following and describe its impact on the financial statements: a. cost principle b.…

A: Financial statements are written records that present the business activities and the financial…

Q: Recognition is the process of: A. Capturing, for inclusion in the statement of financial position…

A: Balance Sheet and Income statement are two important financial statements of business. Balance sheet…

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: Which of the following statements is a usefulness of the income statement? OA. Evaluate the past…

A: For the purpose of business analysis, accounting is important for the business. Accounting is the…

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: Outline revenue recognition criteria under modified accrual accounting

A: Modified accrual accounting: The standards for this approach are set by the Government Accounting…

Q: Choose acceptable income statement account names and describe the most frequent operational…

A: The Answer

Q: Advanced collections from customers prior to the performance obligation being satisfied is accounted…

A: 1) Advanced collections from customers prior to the performance obligation being satisfied is…

Q: Required: Prepare a revise income statement in accordance with generally accepted accounting…

A: According to U.S GAAP, only revenue and expenses for the period, such as the revenue generated from…

Q: ver and Short account: Choice Is used to record the income effects of cas

A: The cash over and short account is an expense account used to record the difference of the physical…

Q: Define accounting income

A: Income: It can be defined as the amount received by the business or an individual from selling its…

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: Distinguish between the revenue/expense and the asset/liability approaches to setting financial…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or…

A: Accounting assumptions :      As the name suggests, these are the assumptions to be considered by…