What is the difference between Payables Ageing Summary and Payables Ageing Detailed Reports?

Q: What is the purpose of an allowance for uncollectibles and why is it important?

A: Accounts receivable is the current asset and the amount that is not received yet from the customer…

Q: Define the term recovery allowance percentages?

A: Tax based depreciation rates are provided by the IRS and are called MACRS which is the modified…

Q: How to Use Compound Interest Factors for Annuities

A: Compound interest factor for annuities is used to compute the present and future value of annuities,…

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: What is accrual adjusting entries? Give three examples?

A: Accrual Adjusting entries: Adjusting entries are those entries which are recorded at the end of the…

Q: Under valuation balance sheet the net liability is the difference between: Premium to be received…

A: Net Liabilities:- It is an excess of Accounts Payable over Accounts Receivables. It includes all…

Q: how does the change in accounting of nonrecurring items?

A: Non Recurring items are the ones that do not occur frequently.

Q: Explain the difference between accrued and prepaid expenses with illustrative examples.

A: Accrued expenses are those expenses which have been incurred but not yet paid out. For example, a…

Q: how much is the Allowance for Overvaluation after adjustment?

A: Given that, Allowance for overvaluation = P157,500 Shippment from home office = 120% of cost…

Q: How did you calculate the depriciation expense?

A: This method also called diminishing balance method or declining balance method where the…

Q: Which method to account for allowance for doubtful account is better according to you and why?

A: Allowance for doubtful debts refers to the amount that is expected to be uncollectible from the…

Q: If a payment of a deferred expense was recorded under the alternative treatment, what account would…

A: Deferred expensesAdvance payment for future expenses is called as prepaid expenses. These prepaid…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not…

Q: When do prepayments occur? Accruals?

A:

Q: Why are adjusting entries and note disclosures labeled “proposed”?

A: Adjustment Entries: The entries are generally recorded prior to preparation of financial statements…

Q: Difference between deferral of expenses/revenue and accrued expenses/ revenue?

A: The business adjust the profits of the business for the current year considering deferred and…

Q: Would a change from Completed Contract to Percentage of Completion be a change in accounting…

A: Change in accounting principle means that change in how financial information is calculated, while…

Q: record estimated uncollectible accounts using the allowance method, the adjusting entry would be a ?

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: Please explain how interest expense changes on the adjusted trial balance and show work out of the…

A: Adjusted Trial Balance Adjusted Trial balance which has to incurred to make the adjustment entries…

Q: What is aging of receivables?

A:

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: Of what merit is the contention that the allowance methodlacks the objectivity of the direct…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: What is function of expense method?

A: Organisations can opt for either of the options to prepare and report the income statement. They are…

Q: What is the purpose of the accrual tranche?

A: The diverse CMO bunches are known as a tranche. Gathering tranche too known as Z tranche is the…

Q: How do I find retained earnings And cash? For adjusted trial balance?

A: Retained earnings in the business means accumulated earnings of the business for the owners.

Q: Which of the two methods of accounting for uncollectible accounts provides for the recognition of…

A: Allowance method: Under the Allowance method the estimated bad debts expenses are recorded using…

Q: What is the difference between the APBO and the EPBO? What are the components of postretirement…

A: Difference between the APBO and the EPBO:Expected pension benefit obligation (EPBO): The amount of…

Q: describe general principles of expense recognition, specifi c expense recognition applications, and…

A: Expenses mean a decrease in economic benefits. Expenses are nothing but those transactions resulting…

Q: What is allowance method?

A: Definition:   Allowance method of accounting for uncollectible accounts: This is the accounting…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: How to construct an Adjusted Trial Balance?

A: Before making adjusted Trial balance, the following steps must be taken.1. Unadjusted trial balance…

Q: Differences between Accrued Interest and Payments?

A: Answer: An accrued interest is nothing but interest on a loan or an interest on bond that has been…

Q: What is the difference between the percent-of-receivables and aging-of-receivables methods?

A: Percentage of sales method:Credit sales are recorded by debiting (increasing) accounts receivable…

Q: Which of the following would be the correct adjustment if there was an increase in an accrual?

A: as per the accounting principal and practice ; Every DEBIT has an equal Credit. Every Debit are…

Q: On which financial statement are permanent accounts reported?

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: What are (a) pass-through expenses, (b) recoverable expenses, and (c) common area expenses? Give…

A: a) Pass through expense: This is an expense which the customer pays directly to a third party or…

Q: How do modifying entries relate to the difference between cash accrual accounting and the difference…

A: Introduction : All cash transactions must be converted into accrual accounting for adjustment…

Q: If an adjustment includes an entry to a payable or receivable account, which type of adjustment is…

A: Some examples of adjusting entries including payable or receivable account are:   1. Rent expense…

Q: What are accrual adjusting entries?

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

Q: When to recognize expenses?

A: Under the accrual basis of accounting, revenue is considered to have been earned when goods are sold…

Q: What is the major difference between the unadjusted trial balance and the adjusted trial balance?

A: Adjusted trial balance , as name suggest , is a trial balance which is made after the year end…

Q: Which of the following is not a disclosure for a provision? O The carrying amount at the beginning…

A: solution : correct answer is option : comparative information as per IAS 37 , comparative…