Describe the different approaches of expense recognition.

Q: Describe the basic nature of the three expense recognition methods. Provide two examples of each.

A: Expense recognition is a principle according to which expenses should be recognised in the same…

Q: An example of an expense classifi cation by function is: B . interest expense

A: An example of an expense classification by function is

Q: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

Q: Define the term accrued expense.

A:

Q: what is the difference betwwen classifying an expense by nature or function?

A: The costs that are incurred to earn revenues in the process of operating activities of the business…

Q: How did you calculate the depriciation expense?

A: This method also called diminishing balance method or declining balance method where the…

Q: What would the total expense be?

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: building. Compute the exclusions from gross income of Arturo:

A: Properties received from father is not taxable because it is a relative  So,Immovable asset received…

Q: Explain the term utilities expense and give an example.

A: Utilities Expenses are expenses incurred on public service utilities like electricity, sewage,…

Q: Define the two main types of quality expense and how they differ from one another.

A: Quality expense or quality cost do not imply the use of costly or high-quality products in the…

Q: What are the differences in the accounting forinventoriable versus period costs?

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Define Expense recognition.

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

Q: What are the two approaches that can be used to adjust for flotation costs?

A: The cost which is arises while issue new stock or shares in the market is commonly known as floating…

Q: Explain an example of deferred expense.

A:

Q: Expense recognition is implemented by one of four different approaches, depending on the nature of…

A:

Q: Explain the purpose and construction of a statement of functional expenses.

A: Financial Statement:   It refers to the financial records of an organization that reports their…

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: Describe the accounting treatment for costs subsequent to acquisition.

A: Costs subsequent to acquisition: It refers to those additional expenditures which are related to the…

Q: Explain the difference between contract assets, contract liabilities, and accounts receivable.

A: Account receivable: The amount of money to be received by a company for the sale of goods and…

Q: avoidable and unavoidable cost?

A: Costs are the amount incurred for the different purposes of the business. It is defined in monetary…

Q: Write the definition, recognition, measurement and derecognition of BORROWING COST

A: Following is the answer to the given question

Q: What is the difference between classifying an expense by nature or function?

A: Expenses: Expenses means money spent for getting revenue to the entity. It involves cost of…

Q: What is a functional expense statement?

A: The answer is explained as follows:

Q: describe general principles of expense recognition, specifi c expense recognition applications, and…

A: Expenses mean a decrease in economic benefits. Expenses are nothing but those transactions resulting…

Q: An accrued expense is an expense that :

A: The expenses to be adjusted in income statement are prepaid expenses and outstanding or accrued…

Q: Define Accretion expense.

A: Accretion expense is incurred due to the effluxion of time which is calculated on the basis of…

Q: TRUE OR FALSE   The main difference between the function and the nature of expense methods is the…

A: Salaries, rent, supplies, and travel are all examples of natural expense classifications whereas in…

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: Give example of personal assets

A: An asset  is a resource owened by individual or business that provides…

Q: what are the differences of cost, expense, and loss

A: Cost, expense and loss are terms normally used in accounting. They can be measured in terms of…

Q: What are (a) pass-through expenses, (b) recoverable expenses, and (c) common area expenses? Give…

A: a) Pass through expense: This is an expense which the customer pays directly to a third party or…

Q: Distinguish between costs that are capitalized and costs that are expensed in the period inwhich…

A: A business cost includes all costs such as capitalized cost, the variable cost, direct or indirect…

Q: Describe the expense recognition principle (matching principle).

A: The expense recognition principle states that expenses should be recognized in the same period as…

Q: What are the four different approaches to implementing expense recognition? Give an example of an…

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