gress Credits decrease both assets and liabilities. increase both assets and liabilities. decrease assets and increase liabilities. increase assets and decrease liabilities.

Q: Which sentence is incorrect? Select one: a. Depreciation is not the actual change in the value of…

A: Depreciation expense is a non-cash expense, which is recorded on the income statement reflecting the…

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: Depreciation is generated due to a. Increase in the value of liability Ob. Decrease in capital…

A: Lets understand the meaning of depreciation. Depreciation is a reduction in value of asset due to…

Q: In a realization account profit arises if: Assets are realized at less than the book value and/or…

A: Realization means the amount that has been received from sale of the assets of the company due to…

Q: Outline how you would incorporate the following into the CCAPM:a. Liquidity.b. Nontraded assets. (Do…

A: The question is based on the concept of the consumption based capital asset pricing model (CCAPM).…

Q: Adjustment for accrued revenue requires a/an choose correct answer a. decrease liabilities…

A: Lets understand the basics. Adjustment entry is required to make to record correct amount of revenue…

Q: An investment property should be measured initially at O A. Cost. B. Cost less accumulated…

A: Investment property is a kind of asset that is part of the balance sheet of the company. It means…

Q: Purchasing power gain or loss results from: a. Monetary asset only b. Monetary liability only c.…

A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies".

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: 1. What is the amount of net free assets? 2. What is the estimated loss n asset realization? 3.…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Accounts that normally have a credit balance are… lag stion © A. Expenses, capital & liabilities B.…

A: The normal balance is the balance side that increases the value of an item. And the opposite side of…

Q: The primary objective of financial management Can be in the form of   a. Maximise the entity’s asset…

A: Financial management means management of funds or finance in the business. It is about making future…

Q: provide an example of a transaction that would: increase one asset account but not change the amount…

A: Increase in one asset account but not change the amount of total assets.Transaction: Purchase of…

Q: Total free assets Net free assets Unsecured liabilities with priority

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Payment to a creditor will Decreases an asset and decreases owner's equity Increases an asset and…

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…

Q: Which of the following is Not correct An increase in a liability may result in a decrease in owner's…

A: The accounting equation is known as the equation that describes the transaction in accounting form.…

Q: Describe the relationship between the expense recognition(“matching”) principle and accounting for…

A:

Q: What is the term for allocation of fixed assets to expense? * O bad debts expense O depreciation…

A: Introduction: Fixed Assets: The benefits from the assets are having more than one year called as…

Q: Capital Loss (MSS Loss) account is an expense account and increased by a credit. O a. False Ob. True

A: Capital loss is the loss that is incurred when the value decreases for the capital asset like real…

Q: Which of the following has a credit normal balance    Interest expenses   Accumulated…

A: An accumulated depreciation account has a normal credit balance, increases on the debit side, is a…

Q: Debit: decrease both assets and liabilities. a. increase assets and decrease Ob. liabilities.…

A: The accounting records are made on two basis of debit and credit.

Q: To capitalize an expenditure is to: Multiple Choice Debit an expense account. Credit an expense…

A: Explanation: Capitalization of expense: Capitalization of expense refers to adding the amount…

Q: financial assets generate net income to the economy, while real assets define the allocation of…

A: Financial assets are assets are liquid assets that can easily and quickly be converted into cash…

Q: Give an example of a transaction that results in: a.    A decrease in an asset and a decrease in a…

A: Transaction analysis: Transaction analysis is an economic event that causes impact on the value of…

Q: Explains the effect of debt on profit margin and return on assets (ROA).

A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…

Q: A ____ will cause Accumulated Depreciation to decrease. A. Debit  B. Credit

A: Particulars debit credit Depreciation Amt   Accumulated depreciation   Amt

Q: If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a…

A: Generally, Assets have a Debit Balance If any account generally has a debit balance and if a…

Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…

Q: Compute the amount of the missing element of financial position.

A: Answer: We have in our financials, Debit side is always equal to credit side or we say Assets =…

Q: Which of the following statements best distinguishes the difference between real and financial…

A: Financial assets: Financial assets are those tangible assets which can be quickly converted into…

Q: On a balance sheet, why are fixed assets depreciated?

A: Fixed assets are recognised at net carrying amount after deduction of depreciation expense for the…

Q: Record the entry to adjust asset values to fair value.

A: In this problem assets are revalued at a gain.  So the gain i.e difference…

Q: Identify an example of a non-current asset. O a. Machinery O b. Bank overdraft O c. Inventory d.…

A: Non-current asset refers to the asset which will not realize in cash within a year from the…

Q: Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers…

A: There are two type of costs treatments that are being done on all type of costs being incurred. One…

Q: Revaluation account is normally not credited with which of the following items: Increase in the…

A: Revaluation account is usually prepared to report the variations in the worth of assets and…

Q: Liabilities a. possess service potential. O b. O c. d. are things of value used by the business in…

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

Q: Assets are increased by debits and liabilities are decreased by credits. TRUE FALSE

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: l amount from an account in which you want to decrease the balance, you use the __________________…

A: The safe withdrawal rate method involves balancing comfotable living without depleting retirement…

Q: Identify the economic resource that has the ability to give economic benefits. a. Expense b.…

A: Economic resources are those resources that provide benefits to the organization through generating…

Q: Identify the nt below that is correct: Multiple Choice Debits decrease asset and expense accounts,…

A: A ledger is a book of accounts that contains debits and credits from the journals that have been…

Q: Recording bad debt expense under the allowance method will have what effect on the financial…

A: The allowance method involves setting aside a reserve for bad debts that are expected in the future.…

Q: True or False: Borrowing money and repaying debt results in changes in Net Worth. Celect one: - True…

A: Net worth means the amount that belong to the owner of the businessmen. It include the amount…

Q: The term expense represents a decrease in asset that always results in decrease in equity

A: The income statement records the revenues and expenses incurred during the period.

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is