Depletion is: A revenue for the business A liability for the business An asset for the business An expense for the business
Q: Which of the following is not included in continuing operations? a. Loss on the sale of equipment b.…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: The Business is in loss, when ________" a) Revenue exceeds Expenditure b) Assets exceeds…
A: The Question has covered the concept of Loss. Note:- Since you posted multiple question we will…
Q: Expense is a decrease in owner's equity resulting from the operation of a business. Is it true or…
A: Given statement is: Expense is a decrease in owner's equity resulting from the operation of a…
Q: Suppose two companies acquire a machinery for use in operations. Company A expenses the transaction…
A:
Q: ____________________ is the income earned after other revenues are added and other expenses are…
A: For gross profit, Cost of goods sold is deducted from Sales Revenue. Income from operations means…
Q: A business will have Net profit in which of the following cases? O a. Expenses are less than revenue…
A: Solution:- Introduction:- Net profit is one of the best way to identify or estimate of business…
Q: Can a business transaction cause one asset to increase with-out affecting any other asset,…
A:
Q: Revenue from sources other than the primary operating activity of a business like interest expense…
A: The Multistep income statement categories the different revenues and expenses incurred during the…
Q: How should the disposal of a component of a business bedisclosed in the income statement?
A:
Q: Profit and Loss Account shows the: Total Capital Employed Profit and Loss through sale of assets…
A: Introduction: The financial statements are a record of financial activities to assess a…
Q: Give an example of business transactions that would:a. Cause one asset to increase and another asset…
A: a.
Q: Given the revenues and expenses of a business, net loss will result if: a. All the above situations…
A: Revenue means the amount earned by selling the goods or services. Expenses means the amount spent on…
Q: Something that has value or the power to earn money for a business is a current liabilitie. True…
A: Current Liabilities: Current liabilities are the short- term liability which is to be paid within a…
Q: In which account, how do businesses keep track of their profits arising from the sale of tangible…
A: In a business, a situation arises when the firm has to sell its assets due to various reason. On…
Q: The following statement suits best the definition of EXPENSES a. Expenses are resources used,…
A: A Expenses is a recurring nature items to be paid. These are shown in the income statement by the…
Q: Assets = Liabilities + (Owner, Capital - Owner, Withdrawal + Revenues - Expenses) 2. What is a…
A: The question is related to Basic of Accounting and details are given. Since you have posted a…
Q: Which of the following statements regarding owner's capital is not valid?
A: Capital of business is the money available for our day to day financial transaction. The main four…
Q: hich statement is false? * Revenues and expenses result from regular activities of the business.…
A: Operating activities:Operating activities refers to basic activities performed by the business…
Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…
A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…
Q: revenue may be defined as : a- increase in assets from all sources b- the amount of capital…
A: Revenue is the income generated by a company using the assets employed by it in the normal course of…
Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…
A:
Q: t is the amount earned by the business on the process of selling goods or performing services. a.…
A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…
Q: The effect of payment made to creditors of the business would be a. Increase an asset and increase a…
A: Creditors are decreased. Cash is decreased.
Q: If a business earns a Net Income it means: * O Capital > Revenue Revenue Expenses
A: The question is based on the concept of Financial Accounting.
Q: The effect of payment made to creditors of the business would be O a. Decrease an asset and decrease…
A: An Payment of any liability will lead to decrease in asset and decrease in liability
Q: Which of the following is true regarding the incomestatement?a. The income statement is sometimes…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Assets are the O a. resources owned by the business. O b. personal property of the owners. O c. c.…
A: A business asset is an item or resources of a value owned by the company which can be tangible or…
Q: Which one of the following states that the life of a business can be divided into equal time…
A: Business is assumed to be going for an endless period of time. Therefore, the period is divided into…
Q: 1. The sources of money generated by the sale of products or services. A. Revenue B.Expenses C.Net…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: In which of the following cases will the business have Net profit ? O a. Expenses are equal to…
A: Net profit can be earned if there is revenue exceeding the expenses.
Q: Explain how a company might use the accounting rules for impairment of long-lived assets to manage…
A: Long live assets: Those assets which are expected to provide the benefits of more than one year.…
Q: If a business has a net loss for a fiscal period, the journal entry to close the Income Summary…
A: Solution: For loss, income summary have a debit balance and in order to close income summary,…
Q: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus…
A: Income statement is the financial statement that helps the users to know the profitability position…
Q: Which statement is incorrect? a. Revenues are income that arises from the ordinary course of…
A: The flow of income that is generated by the regular sale of goods and services is regarded as…
Q: Amount owed by the business to outsiders or whatever is payable by a company is known as ___. a.…
A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…
Q: How many of the following statements regarding the income statement are true? The total from the…
A: The income statement is prepared to find the net profit or losses earned by the business.
Q: Which of the following is not included in continuing operations? Loss on the sale of equipment Gain…
A:
Q: The costs of doing business are classified as:a. assets.b. liabilities.c. revenues.d. expenses.
A: The correct option is option “d”. d. Expenses
Q: What an organization generates from activities, other than its primary business activity, will be…
A: Income statement is a financial statement which shows profit earned by a entity. Income statement…
Q: If a business earns a Net Income it means: O Capital > Revenue O Revenue > Expenses Drawings >…
A: Net income As per formula Net income = Revenue-Expenses If expenses are less than revenue than net…
Q: A prepaid expense is one of the assets which are on a balance sheet that a company or rather a…
A:
Q: Account which shows Gross Profit or Gross Loss of the business is called: Profit and Loss Account…
A: Trading Account is a part of financial statements of a company which shows the results of buying and…
Q: Net loss: O A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of…
A: The equity includes the capital that relates to shareholders.
Q: Which of the following is the accounting report that shows all the income of the business in a…
A: The financial statement refers to the final accounts prepared by the management of the entity at the…
Q: We can say that the business is in profit, when: Select one: a. Income exceeds Liabilities b. Assets…
A: Following is the answer to the question
Q: .Expenses represent a reduction in ___. A.assets B.revenue C.liability D.equity 2.You are presented…
A: Assets and liabilities and equity are part of balance sheet, revenue is part of income statement
Q: Which of the following is correct? Select one: a. If a company fails to record depreciation expense,…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Step by step
Solved in 2 steps
- What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changesWhich of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.If a company capitalizes costs that should be expensed, how is its income statement for the current period impacted? A. Assets understated B. Net Income understated C. Expenses understated D. Revenues understated
- A loss from the sale of a component of a business enterprise is reported separately as a component of income: a. after income from continuing operations b. in income from continuing operations c. after income tax expense d. before income from continuing operationsExpenses represent outflows of assets or increases in liabilities as a result of efforts to produce revenues.That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
- Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principleAlso known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principleWhich of the following is NOT true of revenue expenditure? It is an expenditure that keeps an asset in working condition. It is an expenditure which involves cash It will be debited from the statement of profit or loss It is an expenditure which affects the assets of the business.
- Which statement is incorrect? a. Revenues are income that arises from the ordinary course of business activities. b. Revenues may arise from decrease in liability from primary operations. c. Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received. d. Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses. e. None of the above vWhen is revenue recognized in the following situations?(a) Revenue from selling products, (b) revenue from servicesperformed, (c) revenue from permitting others to usecompany assets, and (d) revenue from disposing of assetsother than products.Which statement is incorrect? A. Revenues are income that arises from the ordinary course of business activities. B. Revenues may arise from decrease in liability from primary operations. C. Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received. D. Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses. E. None of the above