financial assets generate net income to the economy, while real assets define the allocation of income Select one: True False

Q: The recognition of income occurs simultaneously with the recognition of decrease in assets or…

A: Income is recognized in the books of accounts of an entity if the value of assets is increasing, or…

Q: Which of the following types of information is not found in financial statements? * O Profits O…

A: Financial statements refers to a set of documents prepared by a company for every year of…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Basis of the accounting is defined as the methodology under which the expenses as well as the…

Q: What is needed to solve a Return on Assets? Balance sheet only or Balance Sheet with Income…

A: Business needs and calculates various type of ratios in its business. These ratios are meant for…

Q: and

A: Answer: Income statement-Negative effect: Inventories are not recorded in the income statement.…

Q: is A written promise to pay the supplies an asset capital so on? is Fax Machine an asset capital so…

A: The answer is stated below:             Note: Answering the first three subparts as there are…

Q: Which statement is incorrect? * The FUNCTIONAL Income Statement classifies expenses into cost of…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: The flow of money or its equivalent produced by an asset dividends and interest a. investment b.…

A: An investment is defined as an asset or invested, which used in building the wealth as well as…

Q: The components of Statement of financial position will change because of many reasons. Take each and…

A: Statement of financial position can be defined as the summary of the financial balances of an…

Q: haat is the relationship between Income Measurement and Asset Valuation?

A: Profit or loss calculation is indeed a simplified method of calculating income. An accountant…

Q: Which of the following is an External sources of finance? a. Depreciation funds b. Retained…

A: Two sources of finance Internal and external

Q: Which of the following is not correct with respect to accrual accounting?   Accrual accounting can…

A: The accrual basis concept is the most common concept used by business to record revenue and…

Q: In such case, net income is used, whereas cashflow is used

A: Cash flow statement: It is a financial statement that illustrates a company's cash and cash…

Q: /hich of the following statements is false? O a. Assets must always equal the sum of liabilities and…

A: Assets can be classified as current assets or long term assets and represented in the balance sheet.

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: Each economic event or transaction will have a dual effect on financial position. Explain what is…

A: Accounting transaction: Accounting exchanges are those exchanges that legitimately influence the…

Q: Which of the following is NOT a reason why cash flow may not equal net income? a. Capital…

A: The relationship of cash flow with net income is  Cash flow =net…

Q: Which statement is incorrect? *   Under the transactions approach, net income is computed as the…

A: The Single Statement of Comprehensive Income:- It is a statement that presents the financial…

Q: The International Accounting Standards Board’s Conceptual Framework for Financial Reporting  defines…

A: In general term, asset is anything which contains economic value and which can be converted into…

Q: How is the valuation of cuIrent assets affected if the company follows IFRS? OValuation is based on…

A: SOLUTION- HISTORICAL COST  IS THE ORIGINAL OF AN ASSET , AS RECORDED IN AN ENTITY'S ACCOUNTING…

Q: Accounting equation is developed based on a. Revenue realization b. Dual aspect c. Money measurement…

A: The accounting equation states that assets equals to total of liabilities and shareholders' equity.

Q: Financial Asset at Fair Value under OCI would have its gain or loss reported at what Financial…

A: Gain or loss on Financial Asset at Fair Value under OCI will be shown as other comprehensive income…

Q: The valuation method primarily used in the balance sheets of business entities is a. current exit…

A: Balance Sheet: It shows the financial position of the entity. All the assets and liabilities are…

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: Under the historical cost accounting model the financial statement that is regarded as the most…

A: A financial statement is prepared by the management for users' decision making, it includes the…

Q: Which of these is not recognised as income?     Sale of goods.     Capital contributed by the…

A: Explanation: Income: Income refers to the money that a business earns from its day-to-day activity.…

Q: Which statement is incorrect?

A: 1. The statement of comprehensive income is prepared to present the unrealised gain and losses which…

Q: True or False _______ 1. Financial assets at amortized cost shall be measured at fair value through…

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

Q: The gain or loss on net monetary position is computed as a. The difference between the “net monetary…

A: In the period of inflation, an entity incurs purchasing power loss on holding of monetary assets and…

Q: On the multiple-step income statement, which of the following would be the least likely to be found…

A: Other losses and incomes head in the multistep income statement shows all the expenses and revenues…

Q: Which of the following statements about accounting income and economic income is (are) correct? I.…

A: Accounting profits includes explicit costs only, whereas economic profits includes both explicit and…

Q: Contrast the aims of the income statement, the balance sheet, and the cash flow statement

A: Financial Statement: A financial statement is a statement that indicates the firm's, company's, or…

Q: Comment on the following statements with suitable example: i. The ratio return on assets has net…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: Explain the transaction approach to measuring income.Why is the transaction approach to income…

A: Transaction approach:

Q: According to money measurement concept, which of the following will not be recorded in the books of…

A: According to Money Measurement Concept, Accounting records should only include those transactions…

Q: lationship between Income Measurement and Asset Valuation

A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…

Q: ______ ratios are used to measure the speed in which various assets are converted into sales or cash

A: A firm can convert its assets into cash. Those assets that can be converted into cash within a short…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Cash basis of accounting is a system in which all revenues and expenses in cash are recorded for…

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: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: PROBLEM 1: TRUE OR FALSE All changes in an entity’s economic resources and claims to those…

A: Note: Hi student, since there are multiple questions, we will answer only the first question. Since…

Q: Which of the following is the correct formula for calculating rate of return on total​ assets?   A.…

A: Return on assets: Return on assets is the financial ratio that determines the amount of net income…