Explain why reclassification adjustments are necessary.

Q: Explain how the principles of realization andmatching relate to adjusting entries.

A: Definition: Adjusting entries: Adjusting entries are those entries that are recorded at the end of…

Q: Explain about the modified retrospective approach.

A: Change in accounting principle is a change from one generally accepted accounting principle to…

Q: Describe the situations that constitute a change in reporting entity.

A: A change in the reporting entity is referred to as the change in the combination of the companies…

Q: Explain the circumstances of reclassification from FVPL to FVOCI.

A: Reclassification is a journal entry which includes transfer from one general ledger to another. It…

Q: Explain how the retrospective approach offers consistency and comparability.

A: Retrospective approach is the principle in which previously issued financial statements are recasted…

Q: What is a modified retrospective approach of FASB?

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

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: Explain secondary apportionment with relevant examsples

A: Secondary Apportionment: In refers to the process in which the service department overhead is…

Q: reorder level.

A: Reorder level = Average demand * Lead time

Q: What amount of gain should be reported as a result of the modification of terms under ifrs?

A: As per the restructuring of terms, 1. Loan reduced by 20% i.e., P3,000,000 * 20% = P 600,000 2. Loan…

Q: Why should the FIFO method be called a modified or department FIFO method?

A: First-in-First-Out (FIFO):In this method, items purchased initially are sold first. So, the value of…

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: Within the consolidation process, what is the purpose of a worksheet?

A: The worksheet is used to record the consolidated balances by eliminating the inter-company…

Q: Why was the disposal value used for only replace and not upgrading?

A: Disposal Value will be used only in case of replacement because current machine will be sold if we…

Q: What are the primary considerations that should be made when refinancing?

A: Individual consider refinancing of the loan because of the following reasons: Interest rates have…

Q: Calculate reorder level

A: Reorder level is the level of inventory at which point the organization should trigger a purchase…

Q: Evaluate the recoverability test used in U.S. GAAP.

A: Recoverability test is used for determining and accounting for impairments in the value of fixed…

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: Why we should do adjusting entries?

A: A changing diary passage is a section in an organization's overall record that happens toward the…

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: How to calculate deprecation

A: Fixed assets are assets which are held by the business for longer period of time. For example, Land,…

Q: Briefly explain the purposes of adjustments.

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

Q: What is important for a MACRS to consider at the time of disposal?

A: MACRS stands for Modified Accelerated Cost Recovery System. These are the regulations of…

Q: Define Adjustments

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

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 Change in Reporting Entity.

A: A reporting entity is an entity whose general-purpose financial report is used by its users to have…

Q: Can a turnaround document contain information that is subsequently used as a source document? Why or…

A:

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: Where is the reconciliation of Beginning PBO to ending PBO found in the codification (give topic,…

A: Here discuss about the accounting codification related with the accounting standard for the…

Q: What is its Cumulative Bulletin citation? Is it still a valid Reveune Ruling?

A: Will Be Explained:

Q: Explain about the PROSPECTIVE APPROACH: WHEN RETROSPECTIVE APPLICATION IS IMPRACTICABLE.

A: Accounting policies are required to be followed consistently so that, comparability of the financial…

Q: describe the purposes, similarities, and differences among purchase requisitions, purchaseorders,…

A: Purchase requisition is a document which is used by the employee on the behalf of the company for…

Q: COA needs to journalize the appropriation and allotment released by DBM. * true or false?

A: The government uses a different way to report their financial statements than the private sector…

Q: Identify and analyze the challenges you may face in reconciling the concept Bill of Lading and…

A: SOLUTION- Document of title:   Document of title refers to an instrument in writing that acts as…

Q: Is it a turnaround document contain information that subsequently used as a source    document?…

A:

Q: Explain cost of conversion.

A: cost of conversion is the cost of converting raw materials into finished products.

Q: What are the Copies of all approved requisitions?

A: Requisition:-It is a process where one person requests using service or item. A requisition is a…

Q: Define Prior Period Adjustments.

A:

Q: What is the definition of “retrospective application”?

A: The first book that the company will prepare is the journal book in which all the transactions of…