Which of the following activity does not pertain to investing activity? OAssets constructed in a factory O Sale of machine Carriage inward paid Purchase of Land
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A: Accounting policy: It refers to the rule, practices, policies, conventions and rules that are used…
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A: Investing activities of the business means activities which are related to purchase and sale of long…
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A: Assets are considered as the resources of the business used to run the daily activity of the…
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A: Equipment is increased. Accounts payable is increased.
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A: Long-term investments are those assets that are held by the business for reselling in the future. It…
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Q: 4. Which of the following is an example of an operating activity? a. Purchasing equipment b. Selling…
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- One financial accounting issue encountered when a companyconstructs its own plant is whether the interest coston funds borrowed to finance construction should becapitalized and then amortized over the life of the assetsconstructed. What is the justification for capitalizingsuch interest?Which of the following costs are reported on a company’s income statement and balance sheet? Select one: a. Cost of goods sold; Accumulated depreciation b. Gain on sale of land; Cost of goods sold c. Goodwill; Accounts payable d. Accumulated deprecation; LandWhich of the following should be capitalized when a pieceof production equipment is acquired for a factory?a. Sales tax c. Installation costsb. Transportation costs d. All of the above
- Which of the following items would not be depreciable in computing income taxes? a. A company’s corporate headquarter building b. Land on which a company’s factory sits c. A machine tool used for production d. A company’s office furniture.According to FASB Statement No. 34, interest must be capitalized for a. Assets that are ready for use b. Assets constructed for a firm's own use c. Assets that are not being used in the earning activities of the company d. Inventories that are produced in large quantities on a repetitive basisWhich of the following costs are reported on a company’s income statement andbalance sheet?Income statement Balance sheeta. Cost of goods sold Accumulated depreciationb. Accumulated deprecation Landc. Gain on sale of land Cost of goods soldd. Goodwill Accounts payable
- Which of the following statements is/are FALSE: I. Following the acquisition of an item of property, plant and equipment, subsequent expenditure for this item that will extend the asset’s useful life and increase the asset’s capacity is capitalised. II. Investment property does not get depreciated, unless it is measured at cost. III. In the statement of comprehensive income, costs can be analysed according to function or nature. Costs analysed according to function are classified into the following categories: distribution & selling costs; administrative expenses; other operating expenses (or income). IV. Because of the prudence convention, inventories are expensed in the income statement as cost of goods sold when they are sold, and not when they are bought in by the business and paid for. V. A complete set of financial statements consists of the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of…Discuss whether and how a company should account for a revaluation increase and a revaluation decrease on property, plant and equipment. Discuss also the accounting treatment if such an increase or decrease is reversed. do not plagirialized the answerWhich one of the following assets could be described as a current asset?a. Stock of goods for resaleb. Machinery to manufacture goods for resalec. Buildings to house the machineryd. Land on which the buildings stand
- Which of the following options regarding income earned will not be classified as revenue? Select one: a. Profit on sale of vehicle which was used as a delivery vehicle by the entity. b. Commission income earned on each property sold by a sales agent. c. Sale of vehicle that was held primarily for the purpose of being traded. d. Rental income earned by a lessor on commercial buildings leased to a lessee.Which of the following is NOT correct regarding the rate of return on assets? a. The rate of return on assets measures management’s ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity. is B the correct answer?*Hdoes a company account for the disposal of an asset?how does it report gains and losses on its financial statments. *Distinction between addition and improvment and should be a company account for each
