Define the term End-of-Period Convention?

Q: What is seasonal dating?

A: It arranges the invoice date or the date at which the discount and credit period starts, to a time…

Q: Find the APR, or stated rate, in each of the following cases. intermediato calqul

A: Annual Percentage Rate(APR) measures the amount of simple interest earned in a year. The Annual…

Q: What does the term “end-of-period convention” mean? What does it not mean?

A: End-of-period convention is an accounting concept according to which all income and outgoing payment…

Q: Define declaration date

A: Answer: Declaration data is nothing a date the dividends are declared. This is usually done first…

Q: Explain AMENDMENT OF TIME FRAMES?

A: Time frame is the slot if time under which something has to occur or planned. Here, time frames…

Q: What is the difference between a perpetual and a periodic system?

A:

Q: When is the midmonth convention used? Give an example?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: What is meant by the terms “new issue” and “seasoned issue”?

A: Answer: A new issue is a mentioned to a security, which was first registered, issued and sold to the…

Q: What is a modified retrospective approach of FASB?

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

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: 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: Which decision is called the abandonment decision?

A: Answer: The decisions relating to the company that provides flexibility to discontinue the project…

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: For what reasons should the percentage-of-completionmethod be used over the completed-contract…

A: Completed contract method: In this method the revenue and profit are recognized only after the…

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: 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: 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: 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: What is difference between PERIODIC FIFO and PERPETUAL FIFO.

A: FIFO:   FIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: When is a GAAP departure appropriate?

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

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: What are reversing entries? Are they required by GAAP?

A:

Q: Define time period concept.

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

Q: What is meant by maturity date?

A: Bonds are simply corporate debt units that are issued by firms and securitized as tradeable assets.…

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

A:

Q: Define abandonment option

A: Abandonment option which is also known as the termination option gives the obligation to firm or…

Q: find the period of deferral in this problem

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

Q: Define the term average collection period?

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

Q: Differentiate between IFRS vs. U.S. GAAP.

A: International Financial Reporting Standards (IFRS): IFRS are a set of international accounting…

Q: What is original maturity?

A: The maturity period of a security is the time period that represents a securities life. It is the…

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: Explain how to account for the impairment of a held-tomaturitydebt security.

A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…

Q: Define the term Non-comparable Compounding and Payment periods?

A: The question is based on the concept of interest rate calculation, which depend on the compounding…

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…

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…