How is compensation expense computed using the fair value approach?

Q: Which of the following elements represents a residual claim? A . Asset.

A: residual claim :

Q: What is the total allowed fringe benefit deduction

A: Fringe Benefits are the additional benefits provided to the employees in addition to their actual…

Q: What are the fundamental differnces between lessor and lessee?

A: Lessor is the person who has the ownership of the leased asset and grants on lease his asset for a…

Q: What is a description of loss of self-employment income statment? Give example

A: When the expense exceed the revenue then it result in loss. Self employment means the person is not…

Q: What is a performance obligation, and how is it used todetermine when revenue should be recognized?

A: The performance obligation is the promise made by the business entity to provide the goods or…

Q: Discuss the difference between an unrealized holding gain and a realized gain.

A: The gain is the excess of revenue earned over the expenses incurred.

Q: The expense recognition principle relates

A: Expense recognition is based on accrual and matching concept where accrual concept states that…

Q: what is the difference betwwen classifying an expense by nature or function?

A: The costs that are incurred to earn revenues in the process of operating activities of the business…

Q: How did you calculate the depriciation expense?

A: This method also called diminishing balance method or declining balance method where the…

Q: WHAT IS THE TOTAL GENERAL AND ADMINISTRAVE EXPENSES?

A: The administration expenses are related to funciton of business but not directly or indirectly…

Q: What is meant by depreciable base? How is it determined?

A: Depreciable base: The word depreciable base is used to depict the value that is divided by the…

Q: What is the vested benefit obligation?

A: Pension Obligation: It refers to the commitment provided by the employer to pay its employees, the…

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: What are compensated absences?

A: Compensated absences are the absences or leaves for which the employees will be paid. Example of…

Q: computing the taxable income of a compensation income earner, what is deducted from his total…

A: Taxable compensation income derived from deducted all deductions from taxable income .

Q: What is the purpose of the valuation allowance?

A: purpose of the valuation allowance are as follows

Q: Should options given as part of compensationpackages be reported on the income statement asan…

A: Stock options are recognized as a compensation expense in the financial statements of a company.…

Q: The residual income amounted to?

A: Income is the amount remaining with the company from the Revenue after taking into consideration the…

Q: Who bears the costs of appraisal if the fair value ascertained by the appraisers is higher than what…

A: A stockholder can exercise his appraisal rights in case of merger or acquisition of the corporation…

Q: Explain the difference between liquidated damages and penalities

A: Damage refers to the loss that results from some injury to a person, company, property, or…

Q: What is profit contribution

A: The profit is calculated as difference between total revenue earned and total expenses incurred.

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

Q: What are royalties ?

A: Royalties means payments  made for the purpose of use of property or license or some other important…

Q: How to get the gross taxable compensation income?

A: Gross taxable compensation income: This is the amount that helps to know an individual, association…

Q: Explain Valuation and how can it be useful for determining

A: Valuation is to know how much is assets worth according to market or deciding fair value of assets.…

Q: Discuss, using practical example how revenue expenditure should not be capitalized?

A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: What does Compensation for employee services includes?

A: Introduction Compensation is the cash paid to employees for their service that they provided for the…

Q: erence between financial income and taxable income?

A: 7 Correct answer :- A Premium paid for officers life insurance   8 Correct answer :- C The…

Q: Describe workers' compensation and explain why it is important.

A:

Q: n of the following statements' is the fair value model of valuing erty?

A: The answer has been mentioned below.

Q: A right of use asset is initially measured at costs and subsequently measured using the  A. Cost…

A: An asset is the resource owned by the company for using it in the future.

Q: What is the definition of “holding gain or loss”?

A: Gains: Gains are the profits earned from non-operating activities of a business like sale of land,…

Q: What is the difference between a contribution- and a benefit-orientedretirement plan?

A: Defined contribution plan is a retirement plan which gives an option for the employees to grow tax…

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: income be affected

A: Operating income is the amount of revenue realized from the operations of the business, after…

Q: Determine the components of postretirement benefit expense

A: Post-retirement benefit expense:   This is an expense to the employer-paid as compensation after the…

Workers Compensation Plan

Workers' compensation is the benefit provided by the employer to the employee in the form of insurance to cover for their lost wages, medical expenses, disabilities, and death that occurred during the course of employment. It is a government-mandated system and is offered by the employer during the course of employment. Small business owners also have the liability to provide compensation benefits under the government-mandated system.