Explain the difference between ordinary, capital and section 1231 assets

Q: Confusingly, §1221 defines what is not a capital asset. True False

A: Capital Assets:All property that taxpayers own is capital asset, unless it falls into one of the…

Q: The principal difference between two concepts of capital maintenance is the treatment of the effects…

A: CAPITAL: Capital refers to the assets used for the production of goods and services. A typical…

Q: _________numerators does NOT include assets:

A: The Answer :

Q: What is financial assets designated at FVOCI? Why does an entity used it? How?

A: Here discuss about the details of financial assets which was segregated fair value through other…

Q: Expenditures may be either capitalized or expensed. When Expenditure is capitalized it means that:…

A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: What are the two types of claims against assets?

A: Asset is a resource from which the company expected to generate future economic cash flows which can…

Q: Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when: I. The…

A: Financial Assets shall be subsequently measured at amortized cost, when The Business Model is to…

Q: What are the Required disclosures about each major class of capital assets?

A: Capital asset refers to the assets with a longer useful life i.e. more than a year and is not…

Q: What are the classifications of financial assets in accordance with IFRS 9?

A: SOLUTION- FINANCIAL INSTRUMENT- 1-A CONTRACT THAT GIVE RISE TO FINANCIAL ASSETS FOR ONE PARTY AND…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: Define current assets. What basis is used for ordering individual items within the current assets…

A: Current assets represent all the assets of a company that are expected to be conveniently sold,…

Q: Explain the measurement principles for provisions in IAS No: 37, for " Provisions, Contingent…

A:

Q: What is the total capital required for both off- and on-balance-sheet assets?

A: On-balance sheet items are those which are represented as a part of the company's financial…

Q: What items are excluded from the statutory definition of Capital Asset? Why?

A: Capital assets are assets which may or may not connect with the business and include all tangible or…

Q: What temporary capital records are found in the income statement? Revenue and Expenses Revenue and…

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

Q: Which does not belong to the group? A. Capital maintenance approach B. Transaction approach C.…

A: The question is multiple choice question. Which does not belong to the group.

Q: should be capitalized as intangıble assets. O True O False

A: An intangible assets is An identifiable, non monetary, without physical substance, held for use…

Q: Distinguish between the accounting for capital expenditures and revenue expenditures.

A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…

Q: Real property held for investment is a capital asset. True or false

A: Real Estate Property Held for Investment is A capital Assets.   Real estate property held for…

Q: In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall…

A: In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall…

Q: Sale of an capital assets is subject to

A: Option a is wrong because regular income tax is applied in case of income from salary, business or…

Q: Which does not belong to the group? Capital maintenance approach Transaction approach Single entry…

A: Accounting refers to the documentation of the transactions, and events which are related to the…

Q: Access the glossary (“Master Glossary”) to answer the ­following. a.    What does it mean to…

A: Answer: To capitalize an item means to use the item for the long term in the business and disclose…

Q: Which of the following term relates to Copyrights, Patents and Trademarks? O a. Investments O b.…

A: Intangible assets are those assets which do not have any physical existence and it's very difficult…

Q: Define the capital maintenance term. Explain the types of capital maintenance. Write an example on…

A: Following is the answer to the given question

Q: What are the classifications of financial assets in accordance with PFRS 9?

A: PFRS :  It stands for Philippines Financial Reporting Standard which is fully converged with IFRS.…

Q: Revenues, gains, and investments by owners are allincreases in net assets. What are the distinctions…

A: All revenues, gains, and investments by owners increases the net assets of the business.

Q: A) Differentiate between the ‘definition of assets’ and ‘recognition criteria of assets’ provided in…

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

Q: Which of the following A. Capital + Liabilities = Assets B. Assets - Liabilities = Capital C. Assets…

A: The general accounting equation is Assets = Liabilities + Capital.

Q: ___________ and __________ are examples of a depreciable asset, while ____________ and ____________…

A: Depreciable assets - These are those assets that lose its value over the time , due to continuous…

Q: compare ordinary assets from capital assets

A: Ordinary Assets:-  A per tax code Ordinary Assets are the assets which are held by the tax payer for…

Q: 8. Income is: a. An amount for payment of services, interest, or profit from investment b. The…

A: Income is the excess of revenue over expenditures.

Q: Consider the following graph. According to CAPM, which of the following assets is overpriced?…

A: The securities existing below the slope of security market line represents that portfolio doesn't…

Q: __________ is defined in the Conceptual Framework as ‘a present obligation of the entity to transfer…

A: The accounting process includes the bookkeeping process which involves the journal entry of the…

Q: Borrowing costs that are acquisition, construction or production of a qualifying asset are a…

A: IAS 23 borrowing cost says that if any interest is paid on a loan, which is taken to construct a…

Q: Please explain Tangible and Intangible Assets. What are types of both? Also Intangible Assets are…

A: Step1: Definition of tangible asset and intangible assets. We have,Tangible assets are those assets…

Q: I. The amount of borrowing costs that an entity capitalizes during a value, the carrying amount is…

A: As per IND AS 23, borrowing cost eligible for capitalization= Borrowing cost incurred- investment…

Q: Which of the following assets have definite physical share or identity and existence? [A]…

A: Assets:   These are the resources owned and controlled by business and used to produce benefits for…

Q: Section 1221(a) of the Internal Revenue Code defines what:     a. is a capital asset.     b. is…

A: Internal Revenue Code (IRC): IRC is the source of tax laws, the legislative authority and is…

Q: Under IRC 1221(a), it lists some items that are NOT capital assets. What do they have in common?

A: Country L code 1221 (a)- defines Capital Asset as property held by taxpayers whether or not…

Q: Determine the amount of recognized gain or loss. Explain whether the gain or loss is capital or…

A: Recognized Gain/loss on asset  = 325,000+196,000-605,000-27,000+315,000 = 204,000

Q: Can an entity include an asset in its balance sheet that it does not legally own? Explain your…

A: All the transactions of the company that are incurred in the financial year will be first recorded…

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.