Operational revenues would not result from which of the following transactions? Select one: a. Business rental of property b. Performance of services c. Sale of merchandise inventory d. Issuance of preferred stock

Q: The Trading Account shows the result of which of the following a Buying and selling of goods O…

A: Trading Account Consist of the following items   1. Opening Stock of Goods 2. Purchases Made 3.…

Q: Business transactions are economic events that involed all the above information except: Select…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: Which principle or concept states that businesses should use the same accounting methods and…

A: Answer: c) Consistency In accounting the concept of consistency states that company should maintain…

Q: Which of the following is / are correct? I. An enterprise established entirely with equity has no…

A: Check the solution in step 2

Q: (Recognition of Revenue—Theory) Revenue is recognized for accounting purposes when a performance…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: The revenue recognition principle states that:  (a) revenue should be recognized in the accounting…

A: The revenue recognition principle is the accounting principle that states that how and when the…

Q: If the credit subtotal is greater than the debit subtotal in the income statement columns of a…

A: Income Statement is a statement which shows all income and expenses of the business for that…

Q: Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.   Asset…

A: Assets: It is an item that helps in increasing the benefit or helps in increasing the worth to the…

Q: Revenues are: O A. decreases in assets resulting from delivering goods or services to customers. B.…

A: Revenue is the amount of money that a business receives on conducting business i.e. sale of goods or…

Q: capi

A: A)Appropriate circumstances to capitalise tha cost as an asset instead of an expense A capitalized…

Q: explain how the accounts receivable and inventory should be valued on the financial statements. if…

A: The answers are provided as follows:

Q: The Trading Account shows the result of which of the following   O a. Buying and selling of goods…

A: The trading account contains details relating to incomes and expenses that are directly related to…

Q: Information about a segment of the business that a company sells, abandons, or otherwise disposes of…

A: Discontinued operations are sections of a company's primary business or product line that have been…

Q: Which is a change in accounting policy? A. The initial adoption of an accounting policy to carry…

A: Accounting policy: It refers to the rule, practices, policies, conventions and rules that are used…

Q: Identify the accounting assumption or principle that is described below. Is the rationale for why…

A: Definition: Going concern assumption: The going concern assumption emphasizes the longevity of the…

Q: e of an office building B. Depreciation of vehicles C. Maintenance of machinery D. Sales discount…

A: Income statement records income and expenses. It shows the net income or loss of a company for a…

Q: If the revenues are correctly reported and the gross profit of a company is understated, what is the…

A: There would be effect on the retained earnings on stockholders' equity if the gross profit is not…

Q: Which one of the following will increase shareholders' equity, all else held constant?    Select…

A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…

Q: One of the purposes of the statement of cash flows is to ________. A to calculate inventory…

A: Statement of Cash flow : It is one of the financial statements of the business and is prepared for…

Q: one - Which of the following is the account group in which the expenses and losses of the business…

A: Extraordinary activities are the income or expense which is derived from a non business activity and…

Q: If the going concern assumption is not made in accounting, discuss the differences in the amounts…

A: Financial statement:   A formal record of business transactions that record, analyse, and summarize…

Q: which of the following is FALSE regarding a firm's financial statements? Inventory is part of…

A: Financial statements -are the final reports prepared by   management staff of a company to present…

Q: According to the IASB Framework for the preparation and presentation of financial statements, which…

A: According to the IASB Framework for the preparation and presentation of financial statements, which…

Q: Which of the following statements about stockholders' equity is not correct? Group of answer choices…

A: The stockholders equity is represented in the balance sheet of the business.

Q: Identify the accounting assumption, accounting principle, or reporting constraint that mos…

A: Accounting principles are those rules, regulations and guidelines which are used by the accountants…

Q: Sales revenue is reported in the stockholder’s equity section of the balance sheet? True/false

A: Sales revenue: Revenue generated from the sales called sales revenue. Sales revenue = selling price…

Q: Listed below are several information characteristics and accounting principles and assumptions.…

A: Accounting principles are a set of recommendations and rules which are required to be followed when…

Q: the income statement error is discovered in the year of error, what action is to be done by the…

A: Solution Concept If the income statement error is discovered in the year of error then that error…

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

A: Financial statement: Financial information is a written record of an organization and individual…

Q: Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total…

A: We know that the accounting equation is  Assets = Liabilities + Shareholders Equity That is we can…

Q: - Which of the following is the main operating expense of the business ?    a) Cost of Merchandise…

A: Operating expenses are the expenses that a business incurs to carry on normal business operations.…

Q: What is the impact on the accounting equation when a payment of accountable payable is made? what is…

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

Q: Which of the following concepts states that a business will continue its operations for the…

A: Solution:- The following concepts states that a business will continue its operations for the…

Q: Explain in what situations it would be appropriate to recognize revenue over time

A: Recognition of Revenue over time: In situations where the service or sales of goods is divided over…

Q: Items directly affecting Retained Earnings include all of the following Except Choices; Non-Current…

A: Retained earnings is the amount of earnings accumulated over the period of time. Statement of…

Q: Assume an income statement with the following classifications: A. Revenues B. Cost of goods sold C.…

A: Income statement: When all the costs and expenses are subtracted one by one from the sale, then if…

Q: Assume an income statement with the following classifications: a. Revenues b. Cost of goods sold c.…

A: Step 1 An income statement is a financial statement that depicts profitability of business over a…

Q: Which of the following should show a profit in order for a financial institution to give a the…

A: When a financial institution has to provide a loan to the business, then it needs the financial…

Q: Which of the following statements relating to financial statements is true? A. Financial statements…

A: Financial statements are those statements which are prepared at the end of the period in order to…

Q: The “matching” principle in accounting refers to: Group of answer choices d. None of the above a.…

A: The matching principle of accounting refers to that the expenses incurred while conducting the…

Q: Which of the following statements regarding a business segment Is false? Multiple Choice A business…

A: Business Segment: It refers to that division of a company that is distinguished by its product; or…

Q: Which of the following are not part of the components ofthe DuPont system for measuring and…

A: DuPont system is used to measure the return on the equity.

Q: The primary purpose of showing special types of eventsseparately in the income statement is to:a.…

A: Income Statement:  Income statement is a summary of the business all Revenue and Expenses over a…

Q: Which of the following is correct? Select one: a. If a company fails to record depreciation expense,…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…