What is meant by the following terms? You should provide an example of each to support your answer. (i) A Prepayment (ii) An Accrual (iii) Capital Expenditure (iv) Revenue Income.

Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…

A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: For any investment, the costs and benefits should be measured in terms of cash flows rather than…

A: The flow of money in and out of any company, venture, or financial item is referred to as the cash…

Q: Choose the correct. Which of the following items is required to be disclosed by geographic area?a.…

A: Information for the segment needs to be disclosed by geographic area. a. Total asset is the…

Q: What are the two aspects of taxation

A: Taxation is the financial charge which is compulsory in nature. It is the charge imposed by the…

Q: Which of the following refers to the elements of Comprehensive Income?  a) Net Income, Interest…

A: Net income is the excess of sales over all the expenses including interest expense and income taxes.

Q: Which of the following equations expresses the definition of “income”?   Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: How should you record capital expenditure? Debit a liability Debit capital Debit an expense Debit…

A: Capital expenditure: Capital expenditure refers to the expenditures that are incurred to increase…

Q: True or False questions I. Under the accrual basis of accounting, revenues are recognized when they…

A: The accrual basis of accounting is the concept of recording revenues when earned and expenses as…

Q: What exactly is the analytic hierarchy process (AHP) and how can it be used to the process of making…

A: ANALYTIC HIERARCHY PROCESS: It is the method for managing and identifying, organizing the complex…

Q: Expenditures may be either capitalized or expensed. When Expenditure is capitalized it means that:…

A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: advantages of taking amount (measurement bases)

A: Measurement bases are bases at which elements of financial statements are recognized.

Q: Which of the following is not an element of the financial statements? Multiple Choice Net income…

A: Solution:- Introduction:- The following items is not a element in financial statements as follows…

Q: the difference between capital expenditure and revenue expenditure.

A: Expenditure is defined as spending money on something. This can be a cash payment or the exchange of…

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: Another name for a capital expenditure is: O Revenue expenditure O Asset expenditure O Long-term…

A: Capital Expenditure: A payment for goods or services that is reported on the balance sheet rather…

Q: The income statement includes Group of answer choices -expenditures, net worth, surplus or deficit.…

A: Income statement is one of the financial statements that helps in depicting the profitability of an…

Q: Which of the following is not an expense excluded when calculating EBITDA? Depreciation expense,…

A: EBITDA is the earning available to compare the profitability of various companies, this eliminates…

Q: Differentiate between a capital investment and an expense investment

A: Investment refers to the allocation of the funds in the assets in order to get returns. The…

Q: Required: Compute the following a. Contributed capital b. Legal capital c. Total shareholders'…

A: Share holders' Equity: It is the statement that provides the movement of the owner's balance from…

Q: Working Capital. Identify the working capital accounts related to, (d) income tax expense. For each…

A: Income tax payable is the liability for the company. It is presented in the balance sheet and posted…

Q: Which of the following statements about the FASB conceptual framework, as compared to the IASB…

A: Accounting standards are the standards set by the authorized body of each country in various field…

Q: Which of the folowing would be considered an Other Comprehensive income item Ganon dholof dcartinued…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Find the following using the given data: total expense Total assests Total liabilities

A: Financial statement means the trading and profit and loss account and balance sheet of the company…

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: What temporary capital records are found in the income statement? Revenue and Expenses Revenue and…

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

Q: Distinguish between the accounting for capital expenditures and revenue expenditures.

A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…

Q: Which of the following is not included under other income? a. Rent received b. Commission received…

A: OTHER INCOME: IT IS THE INCOME THAT DOES NOT COME FROM THE FIRMS MAIN BUSINESS.

Q: Use U.S. GAAP to determine how to subsequently measure the ten financial assets in requirement 1.…

A: 1). All stand-alone derivatives are classified under the Fair Valu through Profit and Loss (FVTPL)…

Q: ?The favorable balance of profit and loss account should be Added in liabilities Added in capital…

A: Favorable Balance of Profit and Loss Account: All costs are recorded on the debit side of the…

Q: In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall…

A: In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall…

Q: Topic: Income Taxation Active incom

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

Q: Where is the capitalized income recorded? Debit aide of Income and expenditure A/C Deducted from…

A: Capitalised income is income related or gained from the capital assets or long term assets in the…

Q: Balance Sheets show the Flow of Assets and Liabilities between one accounting period and another.…

A: Answer:- True Explanation:- Balance sheet is one of the most important financial statement of an…

Q: Differentiate the Revenue Cycle and Expenditure cycle

A: The processes of the business are divided into different accounting cycles. The revenue cycle,…

Q: Which of the following is correct? Under the Assets test, the reportable segments are A, B, C O…

A: Introduction:- The following conditions satisfy for segment reporting as follows under:-  10% of the…

Q: Explain why it is important to distinguish between capital expenditure and revenue expenditure, and…

A: Expenditures: The Expenditures are the way of spending money on something, or the money that is…

Q: When an expenditure  is made and it is treated as an expense but should have been capitalized, the…

A: The expenses that are paid in advance are known as prepaid expenses.

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

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: - return on assets Is:

A: Closing income tax Payable = Opening Income tax payable + Current year expenses - Income tax paid…

Q: Compute the following: (a) Other income & expenses, (b) Financing Cost, (c) Income Tax, (d)…

A: 1.Discontinued operations = Income From operations - Income from Continuing operations. 2. Financing…