What does issue of debentures for consideration other that cash means?

Q: Differentiate between the accrual method and cash method?

A: The Cash Method: Revenue is reported on the income statement only when cash is received. Expenses…

Q: w are statement of cash flows used to evaluate a loan request for a prospective borro

A: While giving the loan the lender there is need of cash flow statement is required specially when…

Q: Explain Distribution of Cash from Sale of Asset?

A: The question is based on the concept of distribution of cash to the shareholders , which is simply…

Q: Why should an individual not use an installment sale as opposed to a cash sale?

A: Under the normal method of accounting cash is collected from sale of goods or services and…

Q: What amount should be reported as cash?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the difference between cash basis accounting and accrual basis accounting?

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

Q: Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: Example scenarios of commodity money, fiat money, representative money, fiduciary money and…

A: One of the important tools, in order to buy and sell the goods and services in the market, is known…

Q: Should I use cash-basis or accrual accounting?

A: Cash basis and Accrual basis of accounting are two accounting methods that are being used in the…

Q: cash and accrual accounting based o

A: The FIVE difference between cash and accrual accounting are as follows:   1. recognition of revenue:…

Q: Explain the differences between cash and accrual accounting.

A: Account: A record, that documents or records the change in assets, liabilities, or equity for a…

Q: How is Cash audited?

A:

Q: What is the primary difference between cash and accrual accounting?

A: The business revenues and expenses can be recorded on the basis of cash or accrual.

Q: What is a "proof of cash? What purpose does it serve?

A: A four-column bank statement prepared by auditors is called proof of cash. It has a detailed…

Q: How is cash received in person independently verified?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Why are investments in marketable securities shown sepa-rately from cash equivalents in the balance…

A:

Q: When using the indirect method of determining net cash flows from operating activities, how is…

A: Cash flow statement (CFS) is a type of financial statement that gives a summary related to all the…

Q: Which one of the following assets is not considered as cash equivalent? Guaranteed investment…

A: Cash equivalents are form of liquid and current assets which can be converted into cash into short…

Q: What is meant by Premium on redemption of debentures account?

A: Premium on redemption of debenture account: Premium on redemption of debenture is the amount paid to…

Q: ansactions between supp

A: Introduction : Financial markets can be defined as the marketplaces where fund providers as well as…

Q: What is meant by ‘Issue of debenture at discount and redeemable at premium?

A: Bonds:   Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued…

Q: describe how non-cash investing and fi nancing activities are reported

A: Cash Flow Analysis is done keeping cash in mind. It is in the form of a statement that depicts the…

Q: Why might a business invest cash in temporary investments?

A:

Q: What is meant by issue of debentures as collateral Security?

A: Collateral is an asset or property that is given by a borrower to lender to secure the loan.…

Q: When initially recognizing the cash surrender value, what is the reason behind the allocation…

A: According to this principle of accounting, the revenues and expenses stated in the income statement…

Q: define accrual and cash basis accounting.

A: Answer: Accrual Accounting: In accrual basis accounting, revenues and expenses are recognized once…

Q: what is treasury bills and why it is considered as an cash equivalent?

A: Short term Investment: They are  temporary investments and can easily be liquidated  into cash.

Q: Explain the after-tax effect on cash of disposing of assets. Short answer please

A: Cash flows help the management to determine the NPV and evaluate any project based on their NPV.

Q: accrual vs cash basis accounting? Explain with e

A: Accounting is a medium of communication, like any language that we use. For example, two people can…

Q: what are deemed cash contributions?

A: Cash contribution represents the contribution of funds by the partners of the partnership firm.

Q: Describe about the Cash rebates obligation.

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: Reasons ot Motives of holding cash

A: Holding Cash: When a person or organisation holds cash, it refers to money that is kept immediately…

Q: fly discuss the following 1. What are advantage and disadvantages of cash method and accrual method?…

A: Cash basis of accounting: It recognizes the revenue and expenses when these are actually received…

Q: ______ is a sum of money received or paid for the use of someone else's money.

A: As per time value of money concept a dollar earned today is greater than the dollar earned tomorrow.…

Q: Explain the nature of interest on debentures.

A: A fixed amount of money which is paid in the form of interest to the holders of the debentures at…

Q: What are some adjustments that need to be made to convert cash basis to accrual basis accounting?

A: Step 1 Under an accrual method of accounting all, the transactions or events are recorded on a…

Q: 1. What is the effect of the designation of a particular kind of current money payable?

A: Accounts payable (AP) are monies owed to vendors or suppliers for goods or services still not…

Q: ____ are held for the purpose of meeting short-term cash commitments rather than for investment or…

A: There are certain item of balance sheet (Current Assets) which are highly liquid can be be converted…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.