Q: How to calculate inventories

A: Inventories are the assets for the business in which the company is dealing for earning the income…

Q: Define Expenses

A: Expenses are the cost that is incurred by the firm or the company to run the business. Basically,…

Q: Classify the Costs for Financial Statements?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Which accounting technique gives the most relevant information (net cost or gross invoice price)

A: The most relevant information of accounting technique will be explained:

Q: Under the matching principle, when are expenses recorded?

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

Q: What is the accounting treatment for supplies inventories if the purchases method is used to record…

A: Supplies generally form a part of current assets of the entity and represent the amount of supplies…

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: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: What are prepaid expenses

A: Prepaid Expense: Prepaid expense refers to the expense made for the service prior to the consumption…

Q: Calculate Receipts from customers, payments to suppliers, payments for expenses, drawing

A: Cash received from customers shows how total amount has been received from the customers in the…

Q: What are the different risks associated in the accounting of inventories?

A: Answer: Inventories are the current assets of the company which are realizable within 12 months from…

Q: What is the difference between adjusting entries and correcting entries?

A: Journal entries are the building blocks of accounting, which is the act of recording the economic or…

Q: What is the ledger? How to make a ledger out of the trial balance given below?

A: Ledgers are prepared in form of T accounts, which shows classification of journal entries posted.…

Q: initiate the purchase requisition for fre supplies of the material?

A: Option a is wrong because the maximum level is the maximum number of inventory that can be held by…

Q: Administrative Expenses include:

A: Administrative Expenses are the cost incurred by an organization that is directly not related to the…

Q: What is the definition of bookkeeping?

A: Bookkeeping is considered as a part of accounting. It deals with the recording of day-to-day…

Q: Define Expense recognition.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: How does Target record repairs and maintenance expense?

A: Revenue expenditures:   These costs are incurred to maintain the long-term asset in good condition…

Q: What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

A: Introduction: Income and expenditure account to determine the surplus or deficit of income over…

Q: What are the methods of preparing trial balance?

A: Trial balance is the workbook that maintains all balances of ledgers in a particular period.  It is…

Q: Compute for the adjusted balance of "DELIVERY EQUIPMENT

A: The question is related to Property, Plant and Equipment. The adjusted balance of delivery equipment…

Q: Explain the purpose and construction of a statement of functional expenses.

A: Financial Statement:   It refers to the financial records of an organization that reports their…

Q: Why is it necessary to record the adjusting entries in the preparation of final accounts?

A: Adjusting Entries: Adjusting Entries are Entries which are made At Year End to record the Pending…

Q: What document is the source for (a) debiting the accounts in the materials ledger and (b) crediting…

A: a.

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: Which accounting method (net cost or gross invoice price) provides the most useful information?

A: The net cost of any product is the amount of the invoice plus any taxes and extra fees that are…

Q: State the meaning of Receipt and Payment Account.

A: Receipt and Payment Account: Receipt and payment Account is a summary of Cash book. Only…

Q: Discuss the major principle that describes recording expenses.

A:

Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

Q: Goods returned by customer will be debited to which account?

A: When a customer returns the goods sold to him it is called sales return i.e. it reduces the income…

Q: When is it necessary to estimate inventories?

A: Inventories are resources which are held to be sold in the market. Inventories can be in the form of…

Q: What is a functional expense statement?

A: The answer is explained as follows:

Q: Explain the adjusting entries of inventories of supplies.

A: We know that supplies include printing and stationery items , postal stamps etc that are used on day…

Q: What are adjusting entries and why are they necessary?

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

Q: Define Prepaid expenses.

A:

Q: What are program services expenses?

A: Non-Profit Organization is legal entity formed to serve the welfare for the people & society. It…

Q: Explain how to record the purchase of supplies.

A: Supplies are the consumable assets, which are ordinarily consumed in an organization. Supplies…

Q: When to recognize expenses?

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

Q: Would we list Supplies Expense?

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation,…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.