Differentiate between an originating temporary difference and a reversing difference.

Q: how do you determine when goodwill will be written off under the impairment rules

A: Goodwill:Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: What is the differencebetween direct and indirect quotations?

A: Introduction: Exchange rate for a pair of currencies is quoted in two ways. They are, Direct quote,…

Q: Explain the dual purpose of closing process.

A: The closing entries serve to transfer the balances out of certain temporary accounts and into…

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: What are the four distinct categories of adjustments?

A: Adjusting entries in accounting are made with a view to accurately reflect the expenses and income…

Q: What is the dual purpose of the closing process?

A: The closing entries enable the company to transfer the balances out of certain temporary accounts…

Q: What is the difference between adjusting entries and correcting entries? Which method is better and…

A: Difference between adjusting entries and correcting entries:Usually, adjusting entries are needed at…

Q: Define Unadjusted trial balance.

A: The unadjusted trial balance is the listing of general ledger account balances at the end of 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 the benefits of postretirement.

A: Post-retirement benefits may include life insurance  and medical plans, or premiums for such…

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: Explain the four Types of Adjustment Entries?

A: Adjusting entries are those entries which are passed at the end of the year to accurately record…

Q: explain the meaning of permanent differences, and give two other examples

A: The periods between which revenues and expenses are reported for financial statement and income tax…

Q: Which of the following are permanent differences? (check all that apply)

A: A permanent difference is a difference between the tex expense and tax payable and it is never…

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: What are the major procedural differences in applying the current rate and temporal methods of…

A: The key differences related to monetary assets carried at historical cost. Under the temporal…

Q: Difference of Perpetual and Peiodic

A: Perpetual:-It is the inventory management system that keeps the record of the inventory in…

Q: Briefly explain the concepts of temporary difference and permanent difference

A:

Q: Distinguish between ordinary repairs and extraordinaryrepairs. How is each accounted for?

A: Ordinary repairs:   These costs are incurred to maintain the long-term asset in good condition for…

Q: Explain the difference between deferrals and accruals and give two examples from each.

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: How do I know if I need to convert an APR to an EPR or not?

A: The APR stands for the annual percentage rate. It is the rate of return earned on any investment. It…

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: How does accounting for permanent differences less complex than is accounting for temporary…

A: Temporary Difference:   A temporary difference is the difference of an income recognized under the…

Q: What is the unadjusted trial balance?

A: Trial balance is the summary of all general ledger accounts being used in the business. It shows…

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: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: Items of dissimilar nature of function

A: As per IAS1, an entity is required to present all material line items of dissimilar nature or…

Q: Which is an error of omission

A: Accounting error is error in entering, computing, and analysis of data. This includes the recording…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: what is the reconciling DIFFERENCE:

A: A bank reconciliation statement has been prepared to reconcile the balance as per pass book and…

Q: -Explain why there is a departure from the EMH

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for…

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: Explain the difference between direct and indirect quotations.

A: The quotation is a document listing all the prices that are determined and fixed for a project. The…

Q: a temporary difference

A: Deferred tax is the amount of tax owe by or to the tax payer arises out of the temporary differences…

Q: Distinguish between the two general types of subsequent eventsand explain how they differ. Give two…

A: Auditing: Auditing is an independent examination of financial statements. The set of financial…

Q: What exactly are temporary differences? What types of transactions cause these differences?

A: Discrepancies among the carrying value of an asset or liability in the financial statements and its…

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: Define Prior Period Adjustments.

A: