This concept states that income should be recognized when earned regardless of being received and expense is recognized when incurred regardless of being paid.

Q: accounting income and taxable income?

A: Accounting Income -: Accounting Income is the revenue a firm earns or keeps after paying off all…

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

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: The difference between revenues and expenses is net income. What is net income?

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: In what instances do you use unearned revenues and prepaid expenses?

A: Assets are the items owned by the firm or individual. It is calculated by summing up all the items…

Q: Under the matching principle, when are expenses recorded?

A: Accrual accounting: The method of accounting which recognizes revenues before they are received, and…

Q: C. Assets

A: Revenue - Revenues are incomes and increase in the assets of the business . It can also be said as…

Q: Which of the following is not a typical example of an accrued expense? Wages Taxes Depreciation…

A: Accrued expenses are considered as current liabilities in books of accounts. These are the…

Q: An expense is recognized immediately in the statement cs comprehensive income when expenditure…

A: An expenditure that produces the future economic benefit over some periods is capitalized in the…

Q: Explain the components of non operating income.

A: Non Operating Income is that part of an organisation's income that is obtained from activities not…

Q: How much income should be declared by Junnel?

A: When creditor foregoes part/full claim and the creditor also pays cash, then these 2 are considered…

Q: Emoluments, pensions and gratuities, as well as debt service charges are categorized asdevelopment…

A: First of all we need to understand the basic meaning of Development expenditure. Development…

Q: Which of the following best describes revenue?

A: In simple accounting term revenue is the amount which company earn by selling goods or providing…

Q: In accrual basis ,revenues are recognized when received and expenses when incurred Select one: O…

A: Accounting records are recorded in two ways, one Cash Basis accounting and the other Accrual Basis…

Q: income recieved but service not rendered, Please suggest the JE

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: Give at least 3 specific examples of each source of income from compensation, business or…

A: Income is the money which is received by an employee from the employer in return of working. There…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: What is meant by net income and net loss?

A: When the company has more amount of revenue it would have positive income whereas when company has…

Q: How do defreinciate between a accured income and prepaid income

A: Introduction: Accruals: Transactions recorded in the books but not yet received or paid cash called…

Q: How would you differentiate items that are exempted from gross income and items deductible from…

A: Items exempted from gross income refers to income which need not be part of income while calculating…

Q: allocation of income or loss to have economic effect

A: Income or loss is the net result of operational activities of a business conducted during a…

Q: admiHII examples of what type of expense? a. selling expense b. miscellaneous expense c.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Money received from customers for products to be delivered in the future is recorded as: C . revenue…

A: Cash received from the customers will be considered as an asset. Whereas a liability will be created…

Q: State the meaning of Income and Expenditure Account.

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

Q: Topic: Income Taxation Active incom

A: There are two types of income active and passive income.

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: Which of these is not recognised as income?     Sale of goods.     Capital contributed by the…

A: Explanation: Income: Income refers to the money that a business earns from its day-to-day activity.…

Q: The purpose of a statement of retained earning is to ?

A: Statement of Retained earnings is prepared to show the details of changes occurred in equity over an…

Q: this is an account title for an income collected or received in advance and is not yet considered as…

A: Under the accrual accounting system, revenues are recognized when the service or goods are…

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: Under both accrual basis and modified accrual basis we recognize expenses when it is incurred. a.…

A: Accrual basis of accounting says that expense should be recorded in that period in which they are…

Q: Explain why you would prefer to have an expense labeled as an adjustment to income instead of being…

A: There are two ways in which you can reduce the tax liability. The first one is by reducing the…

Q: Explain the transaction approach to measuring income.Why is the transaction approach to income…

A: Transaction approach:

Q: Definitions of Common Income and Expense Items

A: Common Income can have following definitions: Common income is the excess of revenue over costs for…

Q: Which of the following is true? Non-deductible expense is deducted to financial income in computing…

A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…

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: What does it mean when you have a debit balance of accrued interest income? Does a Debit balance…

A: The accrued expenses are the expenses incurred but not paid yet and hence are recorded as liability.…

Q: The costs in the second group are recorded as expenses, but those in the first group are…

A: The cost incurred by the second group is considered as the revenue expenditure of the company, these…

Q: Under the accrual basis of accounting, revenue is recorded a. when earned and realizable b. when…

A: Solution Accrual basis is the method of recording transaction for revenue when earned and expenses…

Q: what is the revenue and gross profit

A: Revenue is the amount or income which has been earned during particular period of time. Gross profit…

Q: whats the difference between an expense and liability according to accounting?

A: Accounting: Accounting is defined as recording, summarizing and classifying the financial…