What is the difference between a principal and an agent for determining the amount of revenue to recognize?

Q: What types of ordinary and statutory income do not constitute assessable income?

A: Ordinary Income is that income which is taxable at ordinary rates or earned from working. Like…

Q: cases would affect the current assets portion of the balance sheet

A: First option is wrong because when Current Tax Expense > Tax Payments, there is a current…

Q: What do we mean by revenue recognition? What does GAAP say about proper revenue recognition?

A:

Q: What events create permanent differences between accounting income and taxable income? What effect…

A: Introduction: Accounting income is profit calculated using the accrual method of accounting.…

Q: what is tax accounting?

A:

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: What is the main principle of tax-effect accounting as outlined in AASB 112/IAS

A: Answer: According to data - This report discusses the main principle of tax effect accounting and…

Q: Your answer Determine the audited balance of Net income under the accrual basis:

A: Net Income = Net Sales- Cost of Goods sold+other Income-Operating expenses- Depreciation-other…

Q: What is agency promblem in financial terms?

A: Agency problem is the conflict arises in the interest inherent in any relationship, in which one…

Q: Explain an example of seller is a principal or an agent can have a significant effect on its…

A: Principal: Principal is the legal owner of goods or service which is transferred to the customer…

Q: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

Q: Additional disclosures are required pertaining to the income tax expense reported in the income…

A: The company must disclose all additional information regarding the income tax expenses reported in…

Q: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting…

A: The implication of the rules of conceptual frame work will helpful to create best standard in the…

Q: In taxation: I. What is Inferior to the Non-Impairment Clause of the constitution and Superior to…

A: The income statement of the company will be prepared, and maintained by the management which will…

Q: Which of the following best describes the application ofgenerally accepted accounting principles to…

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: The primary difference between revenues and gains is:

A: Revenue is the total amount that is earned by selling goods or providing services which are the…

Q: How is tax accounting different from financial accounting?

A: Accounting: It can be defined as the process of summarizing and recording the company’s financial…

Q: How is unearned revenue classified on the balance sheet?

A:

Q: May an exaction be both a tax and regulatory fee

A: First of all we need to understand that Tax and Regulatory fees both are independent and can not…

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: When should revenue be recognised? Are there exceptions to the general rule?

A: Introduction: Revenue is computed by adding the average sales price by the number of units sold. Net…

Q: deferred revenues

A: Income statement represents the net income that is calculated by deducting the expenses from the…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: Discuss and outline the requirements for "revenue recognition principles". What do you think the…

A: Revenue Recognition Principles Revenue Recognition Principle is widely accepted accounting…

Q: Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset…

A: Explanation: Tax Base is defined as the amount that is attributed to an asset or liability for tax…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

Q: define and explain the situs of taxation

A: Introduction: Taxation can be defined as levy of tax by the government or by the concerned authority…

Q: What are Fiscal instrument

A: The instruments used in making the fiscal policy effective and efficient are generally called Fiscal…

Q: What is deferred tax liability and deferred tax liability in accounting?

A: A deferred tax liability:A deferred tax liability is an income tax obligation that is due for the…

Q: Generally accepted accounting principles usually require the use of accrual accounting to “fairly…

A: Net income:   Net income is the amount which is computed by summing up all the revenues received…

Q: tax accounting,

A: Accounting refers to the process of recording and summarizing all the business and financial…

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Gross receipts are defined as all income, regardless of form, collected or accumulated (in…

Q: 1. Explain the accrual basis and cash basis. How can apply these two basis for the components…

A: The accounting basis is used for recognizing the income and expenses.

Q: Explain the principles and purpose of taxation.

A: Principles form a basis for running of taxation system while purpose determines the need for…

Q: What is an assessment under the income tax assessment legislation? and why are assessments importa

A: Solution Return under income tax                 Every person whose income is taxable as per the…

Q: What is the relationship of the promissory note between the maker and the payee?

A: A note of hand can be a financial instrument that contains a written promise by one party (the…

Q: Discuss the major principle that describes recording revenues.

A: We have many accounting principles that will guide accountants in recording and reporting financial…

Q: With reference to relevant legislation, case law and secondary sources, briefly explain different…

A: Tax Liability is the different company's taxable income as shown in the income statement and in…

Q: Which of the following has a different treatment for cash and accrual basis of tax accounting?…

A: Under cash basis accounting, the transactions are recorded when the income is actually received or…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.