Outline the accounting procedures involved in applyingthe operating method by a lessee.

Q: How is the accounting treatment of an event that occurred on the date before the report was…

A: Subsequent events are events occurring after balance sheet but before the issue of financial…

Q: Discuss and explain in details the steps of preparing Accrual basis accounting with one example and…

A: Accrual basis of accounting is that basis of accounting in which income and expenses are recorded in…

Q: Which of the following best describes the current revenue recognition principle? Recognize revenue…

A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…

Q: The key accounting considerations relating to accounts payable are: Determining their existence and…

A: Accounts payable is a current liability.  As per IAS 1, Presentation of financial statements,…

Q: How to write-off non recurring items in accounting?

A: Non Recurring Items: Unexpected and unusual Entries in the income statement which are not supposed…

Q: The terms of a(n) are specified when an accountant and a client enter into a contract for the…

A: Accountant is the person who provides the service of book keeping, tax preparation or accounting.…

Q: The revenue recognition principle dictates that revenue should be recognized in the accounting…

A: Revenue recognition principle says the revenues should be recorded only when the goods are sold or…

Q: Assuming the entity paid its employees their wages, incurred during the period. The proper debit to…

A: Nominal account have a rule of - Debiting all expenses and losses and crediting all incomes and…

Q: Contrast a revenue/expense approach and an asset/liability approach to  accounting standard setting.

A: Revenue Expense approach recognizes Income statement items first Whereas, Asset/liability approach…

Q: An entity classifying expenses by function shall disclose additional information on the nature of…

A: Solution: An entity classifying expenses by function shall disclose additional information on the…

Q: Accrual accounting is defined as follows:

A: Accrual accounting (also known as accrual accounting): It is an accounting system in which accrual…

Q: Revenue is recognized based on a five-step process that is applied to a company's revenue…

A: Five Step Revenue Process : Step 1 : Identification of the contract with the customer Step 2 :…

Q: What is meant by the term unearned revenue? Where should an unearned revenue account appear in the…

A: Revenue: It refers to the amount earned by a business from selling its goods or services to the…

Q: these include debts, obligations to pay, and claims of the creditors on the assets of the business.…

A: The financial statements of the business includes the income statement and balance sheet. The…

Q: How are anticipated administrative expenses reported on a statement of financial affairs?a. As a…

A: The administrative expenses are incurred in the day-to-day operations of the company. These are…

Q: What kind of account is Unearned Revenue?a. Liability accountb. Asset accountc. Expense accountd.…

A: The correct option is option “a”. Unearned revenue is not classified as an asset, owners' equity,…

Q: Which of the following is an amount for products or services purchased on account? Oaccounts payable…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Which type of attestation engagements may accountants conduct on compliance with contractual…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…

Q: What type of account is Unearned Revenue?a. Assetb. Liabilityc. Revenued. Expense

A: Unearned revenue: Unearned revenue is also called as prepaid revenue.

Q: Outline the accounting procedures involved in applyingthe operating method by a lessor.

A:

Q: The accrual basis of accounting records expenses when they are :

A: Accrual basis of accounting follows matching principal where cost incurred to earn revenue are…

Q: Why are adjusting entries necessary under accrual-basis accounting?

A: The accrual basis of accounting states that expenses are matched with the related revenues . And are…

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: What makes product warranties considered as contingent liabilities? Also, what Generally Accepted…

A: Contingent Liability is a liabilty that may arise in outcome of future uncertain amount.

Q: How do the Accountants measure the net income of a specified operating period?

A: Net income: The bottom line of the income statement which is the result of excess earnings from…

Q: Describe the conditions when contract assets and liabilitiesare recognized and presented in…

A: Contract assets: It is the right of the firm to receive payment for the goods transferred or…

Q: How is a change from a non-GAAP accounting method to a GAAP method recorded?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: You are required to prepare: (a) an adjusted Debtors Control Account; (b) a statement to reconcile…

A: Adjusted Debtors control account     Dr Particulars $ Particulars $ Cr   To Balance b/d…

Q: Choose the correct. How are anticipated administrative expenses reported on a statement of financial…

A: Statement of financial affairs:   Statement of financial affairs refers to a statement of assets and…

Q: Account of a debtor must be written off as irrecoverable..what is a document of this transaction?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: How do modifying entries relate to the difference between cash accrual accounting and the difference…

A: Introduction : All cash transactions must be converted into accrual accounting for adjustment…

Q: Under accrual basis of accounting, revenue is recognized when and expenses are recognized when

A: The answer is option (b.)  [i.e  under accrual basis of accounting, revenue is recognized when…

Q: When an entity has the benefit of particular service but it has not received the bill (invoice) to…

A: Prepayment: When payment is made in advance before receiving goods or services, then the payment is…

Q: Which accounting concept is applied when an entry is made for provision for bad debts? A. Going-…

A: A. Going - concern - Under this concept , it is assumed that an entity will continue its operation…

Q: Explain the revenue recognition process when a performance obligation is satisfied over time…

A: Under the IFRS 15- Revenue from Contracts with Customers, a framework is set for revenue recognition…