The purpose of adjustments is to?

Q: What are the four types of adjustments?

A: Four types of Adjustments are: a) Accrued Revenue: Revenue which have been earned but we have not…

Q: n of a

A: Definition of an Asset Improvement A capital improvement is a large investment that improves a…

Q: What form is required?Explain why this is the correct form?

A: Taxation states the financial charge or obligation which is imposed through the government or…

Q: Explain why reclassification adjustments are necessary.

A:

Q: What are the four distinct categories of adjustments?

A: Adjusting entries in accounting are made with a view to accurately reflect the expenses and income…

Q: Define add-on interest

A: Add-on interest It the approach used for computing the amount of rate of interest required to pay on…

Q: Define revaluation

A: Revaluation holds many meanings in different fields. In financial terms, it is the adjustment and…

Q: What is meant by the terms “new issue” and “seasoned issue”?

A: Answer: A new issue is a mentioned to a security, which was first registered, issued and sold to the…

Q: How are gain contingencies recorded?

A: Introduction Gain Contigencies are the uncertain events that result in gain. The gain is purely…

Q: What is a modified retrospective approach of FASB?

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

Q: Explain preemptive right

A: Answer: A pre-emptive right is a benefit that can be granted to other owners in a company that gives…

Q: Define the term End-of-Period Convention?

A: Cash flows refer to the amount of cash that is either invested or received by the company during the…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: Define Valuation allowance

A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…

Q: Which of the following are permanent differences? (check all that apply)

A: A permanent difference is a difference between the tex expense and tax payable and it is never…

Q: Define Temporary difference.

A: Definition:   Account: Account is the basic record that reports all changes in the value of…

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: Briefly explain the concepts of temporary difference and permanent difference

A:

Q: What are the Replacement decisions?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Differentiate between an originating temporary difference and a reversing difference.

A:

Q: Briefly explain the four general types of adjustments provided by our authors and why they are…

A: Answer:-  Adjustment entry meaning:- Adjustment entry is basically adjustment in the books of…

Q: Define adjusted present value approach (APV)

A: Introduction Adjusted present value is a valuation method introduced in 1974 by Stewart Myers.…

Q: What are the Basic Concepts and Terminology of Replacement-Analysis?a

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: When is a GAAP departure appropriate?

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

Q: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: When are loss contingencies recorded?

A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

Q: When is the Ratio method applicable? How about the Apportion method? Give situational example.

A: The Ratio method is applicable in order to the identification of the cost and time of the specific…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: In what circumstances is the compressed adjustedpresent value (APV) model useful, and how wouldit be…

A: The question is based on the concept of adjusted present value (APV). APV uses net present value…

Q: What is the primary difference between the APT and the CAPM?

A: APT is an abbreviation used for arbitrage Pricing Theory whereas CAPM is an acronyms used for…

Q: The correction of errors is the situation that creates prior period adjustments. Explain what are…

A: Prior period adjustments:   The corrections or adjustments that are made to the current year…

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: on remeasurement nvestment is

A: Given as, To find the gain on the investment as,

Q: What's the adjustment?

A: The answer is provided as follows:

Q: Methods and rules to be followed in case of reconstitution?

A: Solution- It is often noticed that a partnership firm undergoes restructuring. These changes are…

Q: Explain Interests, Encumbrances, and Easements?

A: Interest refers to the additional amount paid by a borrower or received by an investor apart from…

Q: artnership should be adjuste

A: Partnership is a type of business. In partnership there are some Reconstruction of partnership event…

Q: What are the requirements for a prior period adjustment?

A: Prior period adjustment: A prior period adjustment is the result of a material error discovered in…

Q: Define Prior Period Adjustments.

A:

Q: What is the definition of “retrospective application”?

A: The first book that the company will prepare is the journal book in which all the transactions of…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.