Define Prior Period Adjustments.

Q: Explain receivables conversion period

A: It is the time interval connecting the sale of the last item using a credit card and cash receipts…

Q: later, the pre etting up the

A: Working notes :-                                        Break-even point = Contribution is…

Q: Explain why reclassification adjustments are necessary.

A:

Q: What is the End-of-Period Convention?

A: As per the end-of-period convention, all incoming and outgoing payments (cash flows) of an…

Q: Explain Computing Holding Period Returns?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: Amounts of interest depend on lengths of time.Explain how?

A: Interest is also dependent on the base of the length of time A loan taken for a long period of time…

Q: Differentiate between permanent current assets and temporary current assets.

A: Assets:   These are the resources owned and controlled by business and used to produce benefits for…

Q: Define Temporary difference.

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

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: 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: Define Loss contingency.

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

Q: Define Expense recognition.

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

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

A:

Q: Define vesting period

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

Q: How does Target record repairs and maintenance expense?

A: Revenue expenditures:   These costs are incurred to maintain the long-term asset in good condition…

Q: What is interim reporting period? Describe about it.

A: Interim financial statements are defined as a financial report containing either a complete set of…

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: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: ce raise and operation of busin long period of time? Explain in

A:

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: correction of prior period

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: The correction of errors is the situation that creates prior period adjustments. Explain what are…

A: Prior period adjustments:   The corrections or adjustments that are made to the current year…

Q: on remeasurement nvestment is

A: Given as, To find the gain on the investment as,

Q: Give examples of substantive procedures inthe acquisition and expenditure cycle andrelate them to…

A: Substantive Procedures are an activities performed by an auditor to detect and disclose any kind of…

Q: Describe the accounting and amortization of prior service costs.

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

Q: What's the adjustment?

A: The answer is provided as follows:

Q: Which of the following would be the correct adjustment if there was an increase in an accrual?

A: as per the accounting principal and practice ; Every DEBIT has an equal Credit. Every Debit are…

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: Over what period of time should compensation cost be allocated?

A: As per GAAP, the compensation cost must be recognized over the service period of an employee.For…

Q: Methods and rules to be followed in case of reconstitution?

A: Solution- It is often noticed that a partnership firm undergoes restructuring. These changes are…

Q: Define the term average collection period?

A: Accounts receivable turnover analyzes the number of times accounts receivables is collected and…

Q: Explain when it is appropriate to recognize revenue over a period of time.

A: Revenue: Revenue refers to the income received from the business activity or sale of the output,…

Q: artnership should be adjuste

A: Partnership is a type of business. In partnership there are some Reconstruction of partnership event…

Q: Define temporary operating current assets

A: Temporary Operating Current assets are a type of current assets which fluctuate with time or season…

Q: What are the requirements for a prior period adjustment?

A: Prior period adjustment: A prior period adjustment is the result of a material error discovered in…

Q: What is interim reporting?

A: Financial Reporting:   It refers to the disclosure of the financial results of the organization to…

Q: Define Periodicity assumption.

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