Discuss the concept-based on the premise ‘do not anticipate profits but provide for all losses’.

Q: DOES NOT fall within the Profitability category

A: The Answer

Q: An item is considered material if: a. It doesn’t cost a lot of money. b. It is of a tangible good.…

A: Things are viewed as material when they excessively affect revealed benefits, or on individual…

Q: Explain, with examples, why accruals reverse overstate the firm's profit.

A: Aggressive accounting is related to the practice of accounting which is designed in order to…

Q: Help According to the principle of conservatism, when faced with uncertainty about the value of an…

A: The conservatism principle suggests that a business, should anticipate and record future losses…

Q: What element should be assessed when considering the quality of profit and loss and balance sheet.

A: The elements are as follows: Leverage is a measurement of the business's ability to meet long-term…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Example of items that would be adjusted directly against equity, rather than being included as part…

Q: Explain the difference between profit and profitability.    Explain the concept of going concern…

A: Following are the difference between profit and profitability: Profit is an absolute figure that…

Q: The gain or loss on the net monetary position in a hyperinflationary economy shall be included in:…

A: This question is answered according to IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

Q: Which of the following statements about Loss Contingencies is TRUE? According to the practice of…

A:

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention  advocates for accounting all the prospective losses but leave…

Q: adjusted directly against equit

A: Equity refers to the stake of shareholder's in the company. The formula for calculating equity of…

Q: the total debits in the statement of realization and liquidation exceeds the total credits, there is…

A: THE CORRECT ANSWER IS (A) NET LOSS FOR THE PERIOD ,   To calculate a realized gain or loss, take the…

Q: 1. Which statement about negative goodwill is true?   Negative goodwill should be recorded as a…

A: Negative goodwill : The goodwill is negative when the fair value of assets exceeds the amount…

Q: Answer true or false and explanation to why. Restructuring the liabilities might positively…

A: Debt and liability restructuring is the process of settling all owing and unpaid liabilities by…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Examples of items that would be adjusted directly against equity, rather than being included as part…

Q: Provide an example of items that would be adjusted directly against equity rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: When an irrecoverable debt recovered is not adjusted for: Mutple Choice Profits are overstated and…

A: Profit is overstated means the amount recorded is greater than the actual amount and current assets…

Q: Which of the following is correct about "Cost", "Expense", and "Loss" concepts? Select one: a.…

A: Income statement is one of the significant financial statements and the two components of this…

Q: Describe pro forma income and the importance of pro forma income in the evaluation of the income…

A: Pro forma income can be defined as an income which presents true and fair picture of financial…

Q: ?The favorable balance of profit and loss account should be Added in liabilities Added in capital…

A: Favorable Balance of Profit and Loss Account: All costs are recorded on the debit side of the…

Q: Which of the following is a suitable benefit to HCA? a. The profits of HCA are so unrealistic O b.…

A: Historical cost accounting (HCA) is the accounting method in which recording of transactions and…

Q: ses, companies can use the MACRS depreciation method. B When you change a depreciation estimate,…

A: Answer: Option (A) is Wrong.

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Following are the example of items that are adjusted directly against equity, rather than being…

Q: Critically evaluate the pros and cons of the following statement: Financial statements are useless…

A: The pros and cons of the given statement are discussed hereunder : Historical cost refers to the…

Q: Discuss, using practical why capital ratio is used to share a loss on realization

A: The ratio is used because the partners having more capital is liable for more loss and the partner…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: compute the estimated deficiency  compute the expected recovery percentage of unsecured creditors…

A: Net realizable value: The amount that can be realized from the sale of the asset is known as net…

Q: Account for all the prospective losses but leave aside all the prospective profits. This is as per…

A: Accounting concepts: These are the set of rules and guidelines which every company must follow in…

Q: Critically explain each one of the following financial terms: Asymmetric information Moral hazard…

A: Answer:- 1 Asymmetric information:- When one side in a transaction has more information as compare…

Q: Which of the following best describes why the predicted incremental earnings arising from a given…

A: Solution:- Incremental earning that we get from a project are not enough to find out that the…

Q: How would a debit balance in Unrealized Gain (Loss) on Available-for-Sale Investments be reported in…

A: Unrealized Gains and Losses refer to the rise or decline in the paper value of the company's various…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: According to our authors, what is an unrealized gain and unrealized loss?

A: In a general view gains and losses are the outcomes of investing which are inevitable. A gain or…

Q: provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Please answer clearly and thoroughly1) On the RE Statement it shows the Net Income, if there is a…

A: Step1: Statement of retained earnings. We have,Statement of retained earnings show the beginning…

Q: Please explain: Managers estimate bad debt expense based on​ which of the following? professional…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: Consider the formula Value=PV(FCF,Wacc). Describe how bankrupt costs are included in the expression

A: Valuation of a firm is done by calculating the present value of all the future expected cash flows…

Q: 1. What are the accounting rules for determining whether to expense certain costs against revenue…

A: Generally Accepted Accounting Principles-: Generally Accepted Accounting Principles (GAAP) is a…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.