Which of the following is not affected by a change in interest expense?   a. gross margin   b. EBIT   c. ROE   d. a. and b

Q: When the fair value of plan assets is multiplied with a discount rate, an interest expense arise.…

A: Interest expense is determined by multiplying the discount rate with the start of the period by the…

Q: Decreases in the projected benefit obligation due to an increase in interest rate are called (enter…

A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…

Q: Excess of revenue over expense is O a. Profit O b. Loss O C. Asset O d. Revenue

A: Revenue is the amount received from selling or transferring goods and services from the business to…

Q: Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same…

A: As per IFRS 16, Leases A Gross investment in the lease is  = lease payments receivable by lessor in…

Q: How should (i) a change in calculating the provision for doubtful accounts, and (ii) change in…

A: The provision for doubtful accounts is accounting estimates that change on a yearly basis. It is…

Q: How is the Accumulated Benefit Obligation (ABO) different from the Projected Benefit Obligation…

A: Accumulated Benefit Obligation and Projected Benefit Obligation both are terms used in the pension…

Q: 7 What are utilities, property taxes, and insurance all examples of? A O Contract contingencies. BO…

A: We first needs to understand all the terms given in the question to answer the question. Contract…

Q: Requirements: a. What are the net effects of the errors on Rodney's 20x1 and 20x2 profit or loss,…

A: 1. Insurance Premium paid for 3 years (20*1, 20*2, 20*3) = ¶ 3,600  Insurance Premium paid for 1…

Q: Which of the following would trigger a subtraction in the indirect operating section? A. decrease in…

A: The correct option is B that is, gain on sale of investments as it is a non-operating gain that is…

Q: Direction: Choose the correct answer.  1. A provision is a. An event which is not recognized…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Bonus in reduction of premium given in the adjustments will be recorded in: a. Both credit and debit…

A: Bonus is the share of profit which a policy holder gets from the life insurance company. Premium…

Q: Which of the following accounts was created as the result of an accrual for expenses?  Group of…

A: Lets start with the basic understanding. Accrual for expense is a liability which is incur because…

Q: St: For reclassification interest rate must be determined based on the new carrying amount or fair…

A:

Q: Accounting for all possible losses and expecting no profit is as per O a. Revenue recognition…

A: Answer : Option (C ) conservatism Principle

Q: _ ignores the affect of compounding   a)compound rate b)discount rate  c)stated rate…

A: The compounding effect is the effect that has been charged on the loan or deposit when the interest…

Q: 1. Which T-account is incorrect? a. Depreciation Expense b. Interest Receivable c. Capital Stock d.…

A: The T-accounts are prepared as debit on left side and credit on right side.

Q: What is the effect on income (overstated or understated), if the adjusting entries are notrecorded?

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

Q: Expense and loss are the same. Net loss is a deficit or negative figure in the net income lin

A: No expense and loss are not the same. Yes net loss is shown as a negative figure (in brackets) in…

Q: Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees…

A: In accounting, deferral means to defer or delay recognizing certain revenues or expenses…

Q: Which of the statements is correct? a)FV of annuity due is greater than FV of regular annuity. b)FV…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

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: Which of the application of of a. Presenting a the related s b. Deducting fe gains and pr c.…

A: Presentation of Financial Statements PAS 1 describes the basis for presenting the general purpose…

Q: Capital Loss (MSS Loss) account is an expense account and increased by a credit. O a. False Ob. True

A: Capital loss is the loss that is incurred when the value decreases for the capital asset like real…

Q: e following statements about annuities are true? Ch hnuity due earns more interest than an ordinary…

A: Annuities are instruments that involve fixed payments. There are mainly two types of annuities i.e.…

Q: Which of the following journals would correctly post an adjustment for deferred (prepaid) income?…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: The direct write-off method requires estimates of: *       (a) Uncollectible accounts expense…

A: Direct write off method means where bad debts is written off when it actually occus. No estimates is…

Q: admiHII examples of what type of expense? a. selling expense b. miscellaneous expense c.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Give an example of a transaction that results in: a.    A decrease in an asset and a decrease in a…

A: Transaction analysis: Transaction analysis is an economic event that causes impact on the value of…

Q: Advances from customers are classified as a(n) Select one: a. The answer does not exist b. revenue.…

A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…

Q: A ____ will cause Accumulated Depreciation to decrease. A. Debit  B. Credit

A: Particulars debit credit Depreciation Amt   Accumulated depreciation   Amt

Q: Which option is not a short term adjustment? A. Prepaid expense B. Depreciation C. Income…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: What is the effect of overstating the accrued utilities at the end of period?   overstated expense…

A: Overstating accrued utilities at the end of period means expenses and related liability are recorded…

Q: Which of the following is not an expense adjustment? A. None of the above B. Consumable inventory…

A: Expense: It can be defined as the cost incurred by the business for continuing its operations and…

Q: Which of the following items represent a deferral ?                                      A. Prepaid…

A: In accounting, deferral means to defer or delay recognizing certain revenues or expenses on the…

Q: Under both accrual basis and modified accrual basis we recognize expenses when it is incurred. a.…

A: Accrual basis of accounting says that expense should be recorded in that period in which they are…

Q: The key difference between rental income assessed under S10(1)(a) and S10(1)(f) is: a. The S10(1)(a)…

A: Rental Income: Rental income refers to the full amount of rent and related payments you receive when…

Q: Expired cost shown in: O a. Balance Sheet as a liability O b. Balance Sheet as an asset O c. Profit…

A: Net profit means the difference between the income and expenses. Financial statement means the…

Q: 12) In the Allowance Method when we we collect on a previously written off receivableA) Assets stay…

A: when we previously write off receivable , net income of the company decreases Now when the amount…

Q: Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current…

A: Advance is the money which is given by one party (customer) in advance to the other party (other…

Q: values. How much is the capital balance of A after the admission of C if C's admission was accounted…

A: Bonus Method: Under this method, the Capital balance of the Incoming Partner shall be calculated as…

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 is the liability created by receiving revenue in advance called (before it is actually earned)?…

A: Revenue receipts in     Advance is shown as unearned revenue.

Q: 1. A fixed amount added to the premium of a given poli regardless of policy size is known as O hl no…

A: A policy fee is a one time charge which is added to the premium and does not get affected by the…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

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…

Q: The alternative treatment in reporting Subscription Receivable is     a. deduction to Current Assets…

A: Subscription receivable is a revenue receivable that is an asset for the company.

Q: Which is the most suitable method based on the concept that profit is the difference between the…

A: Owner equity means the amount which belongs to the owner of the business. It also refers to as…