Differentiate between Current Account vs Capital Account.

Q: What are the pro forma financial statements?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Differentiate between the accrual method and cash method?

A: The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses…

Q: Describe how debits and credits affect assets, liabilities, and permanent owners’ equity accounts.

A: Asset: Assets refer to the resources owned by the business, which are utilized in the course of the…

Q: are income and expenses included in the equity?

A: Lets understand the basics. Equity is a amount invested by the owner of the entity. In company, we…

Q: Discuss the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: How should you record capital expenditure? Debit a liability Debit capital Debit an expense Debit…

A: Capital expenditure: Capital expenditure refers to the expenditures that are incurred to increase…

Q: How to adjust net income to cashflow.

A: In cashflow there are 2 methods for calculating operating cash flow, they are: a. Direct Method b.…

Q: What is accrual accounting?

A: Accrual basis of accounting is an accounting method based on which accrual transaction are recorded…

Q: Define Accrual accounting.

A:

Q: What is the difference between cash basis accounting and accrual basis accounting?

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

Q: Describe how debits and credits impact assets, liabilities , owner,s equity

A: The books of accounts are prepared as per the double accounting system. All the debits shall be…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: Distinguish between financial liabilities and non-financial liabilities.

A: Liabilities are defined as the amount of money which is owed by a firm in exchange for goods and…

Q: Explain how accounting activities are different from financing activities by providing real-life…

A: Accounting is the practice of preparing accounting records, including measuring, preparation,…

Q: What are two kinds of paid-in capital accounts?

A: Paid in capital is amount raised by companies by issues of common stock or preferred stock.Paid in…

Q: Distinguish between cash-basis net income and accrual-basis net income.

A:

Q: Convert from cash-basis net income to accrual-basis net income

A: Cash basis : Under cash basis of accounting, revenues and expenses are recorded only when cash is…

Q: following heads in the accounti

A: Accounting principle follows the double entry system of recording transactions. To reconcile the…

Q: What do you know about the interrelationships between income statements, balance sheets, and cash…

A: This question deals with the interrelationships between income statements, balance sheets, and cash…

Q: What are the accounts in which capital and debts are monitored and which pay the remainder? A) Cost…

A: What are the accounts in which capital and debts are monitored and which pay the remainder?

Q: Is Capital debit or credit?

A: As per Business Entity concept Business is treated as an entity which is different from Proprietor.…

Q: State the meaning of Income and Expenditure Account.

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

Q: Explain Cash versus Accrual Accounting.

A: Cash basis accounting: Cash basis accounting is the method of accounting that record revenues only…

Q: What is accural vs cash basis accounting. Explain with examples?

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: Which concept is applied to net income and other comprehensive income? A. Borrowed Capital B.…

A:

Q: What is the relationship between the accountingequation and the balance sheet?

A: Accounting is the detailed process of maintaining books of accounts. It includes several steps like…

Q: What type of account is Aaron Pickle, Capital?      Asset         Liability         Owner’s equity…

A: Lets understand the basics. When any business is started then whatever owners bring consider under…

Q: What type of account is accrued income

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: What’s financial instrument

A: Financial instruments can be broadly divided into: a. cash instruments b. derivatives instruments

Q: Explain the difference between the current account and the capital and financial account in the…

A: The balance of payment shall be the record of payment or receipt between a nation and a national of…

Q: WHAT ARE THE TYPES OF FINANCIAL STATEMENTS?

A: Financial statements Financial statements are referred to as written records that are used in…

Q: What is the difference between liabilities and assets?

A: The balance sheet represents the financial position of the business with assets and liabilities at…

Q: This refers to earnings derive from depositing or lending money, goods or credits. O Dividend income…

A: Lets understand all options. Dividend income is a income derived from the investing in any entity.…

Q: The monetary value of the net assets is reported at its historical cost on the balance sheet? a.…

A: Physical capital is represented by the capital utilized for acquiring tangible fixed assets or…

Q: What is the difference between an income statement and a cash flow statement? Please also explain…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: Assets: Liabilities: Equity:

A: Equity means total amount attributable to the shareholders. It includes common stock account and…

Q: BRIEFLY ASSESS HOW TAXATION CAN BE USED TO CONTROL: a. BALANCE OF PAYMENT, b. SAVING, c.…

A: Taxation is the government's tool for shaping the economy into the desired shape. Governments…

Q: The capital account to be credited to Elor

A: There are 4 partner in Partnership firm sharing profit ratio 2:2:2:4. Out of these four partner Sam…

Q: Define the following and their differences : Real accounts                capital account  Nominal…

A: In accounting, there are several type of accounts being used in business. These are personal…

Q: Differentiate between net income and net cash flow?

A: Net Income is the difference between revenue and expenses recognized in an accounting period.Net…

Q: Describe the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: Define accrual basis accounting and contrast it with cashbasis accounting.

A: Definition of Accrual basis of Accounting  Accrual accounting means revenue and expenses are…

Q: What is the formula used to get the answers in interest expense and net income?

A: The interest expense is the amount a borrower has to pay against the amount borrowed. It is…

Q: Where do current assets and current liabilities come from?

A: Current Assets = Cash + Supplies + Prepaid Insurance Current Liabilities = Creditors + Salary…

Balance of Payments

BOP is categorized into the following three components: