What is the End-of-Period Convention?

Q: What is seasonal dating?

A: It arranges the invoice date or the date at which the discount and credit period starts, to a time…

Q: What are two ways to calculate returns for a holding period?

A: It is also called as HPR, which states to the total returns during a period for which a investment…

Q: What does the term “end-of-period convention” mean? What does it not mean?

A: End-of-period convention is an accounting concept according to which all income and outgoing payment…

Q: What is the difference between a perpetual and a periodic system?

A:

Q: When is the midmonth convention used? Give an example?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: What is the dual purpose of the closing process?

A: The closing entries enable the company to transfer the balances out of certain temporary accounts…

Q: In the phrase “end-of-period convention,” the word “period” refers to what?

A: Introduction: Revenues are the profits or benefits that one person is having, while costs are the…

Q: Define the term End-of-Period Convention?

A: Cash flows refer to the amount of cash that is either invested or received by the company during the…

Q: Explain Computing Holding Period Returns?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: Which decision is called the abandonment decision?

A: Answer: The decisions relating to the company that provides flexibility to discontinue the project…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: What is periodic rate?

A: A periodic rate is a rate that can be paid on a credit or acknowledged over a fixed timeframe on…

Q: Define Temporary difference.

A: Definition:   Account: Account is the basic record that reports all changes in the value of…

Q: is the modified duration? (Do not

A: Modified duration refers to the formula which is used to measure the change in the amount of…

Q: nator of the increment or of Diluted EPS is?

A: DEPS= Earnings availble for Equity shareholders + Savings in earnings or interest due to conversion…

Q: The period set is arbitrary. It to understand

A: Payback period is the no. of years required to recover the initial amount invested.

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: What is a subsequent event?

A: Financial statements are the records containing the trading account, profit and loss account and the…

Q: Which of the following is incorrect regarding measurement period?

A: Business combinations are the result of acquisitions or mergers. Here, one party acquires the other…

Q: What is a break-even point and how is it calculated?

A: Break-even point: Break-even point is defined as a situation where a firm’s expenses and revenues…

Q: What is maturity date?

A: Maturity dates are generally used in order to classify the securities as short term, medium term or…

Q: What is interim reporting period? Describe about it.

A: Interim financial statements are defined as a financial report containing either a complete set of…

Q: What is the closing process?

A: Closing Process: Closing process is a process which consists of journalizes the closing entries of…

Q: Define seasonal dating

A: Introduction: When sales are seasonal an organization makes use of seasonal dating. For example,…

Q: What is difference between PERIODIC FIFO and PERPETUAL FIFO.

A: FIFO:   FIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: When is a GAAP departure appropriate?

A: Definition:   Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Difference between periodic LIFO and perpetual LIFO methods.

A: LIFO:   LIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: a basis per

A: A basis period will be the time period for that a sole trader and the partnership pays the tax for…

Q: What is meant by maturity date?

A: Bonds are simply corporate debt units that are issued by firms and securitized as tradeable assets.…

Q: How to prepare a break-even chart for the given period from the Table?

A: Break-even analysis is the costing technique of determining and analyzing the margin of safety (MoS)…

Q: The correction of errors is the situation that creates prior period adjustments. Explain what are…

A: Prior period adjustments:   The corrections or adjustments that are made to the current year…

Q: What do you mean by adjustment entries ?

A: A journal entry is being used to track a business transaction in a company's accounting records. A…

Q: What's the adjustment?

A: The answer is provided as follows:

Q: What is GAAP? When was it formed?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles (GAAP) is…

Q: What is original maturity?

A: The maturity period of a security is the time period that represents a securities life. It is the…

Q: What are the requirements for a prior period adjustment?

A: Prior period adjustment: A prior period adjustment is the result of a material error discovered in…

Q: What is ‘Fixed’ APR and ‘Variable’ APR?

A: APR is percentage  Annual rate of interest  charged on credit cards or mortgages or loans.

Q: Define Prior Period Adjustments.

A:

Q: What is interim reporting?

A: Financial Reporting:   It refers to the disclosure of the financial results of the organization to…

Q: What is the definition of “retrospective application”?

A: The first book that the company will prepare is the journal book in which all the transactions of…