Why are the rules of debit and credit same for both liability and capital?

Q: How is a financial statement under IFRS different from

A: Solution- In IFRS you need to provide Other Comprehensive Income Statement also in addition to…

Q: What is the relationship between total liabilities and total assets? What is it called?

A: Assets:   An asset is any form of resource both tangible and intangible owned by an organization for…

Q: What is accounting?

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: hy is it important to understand financial statem

A: Financial statement are representation of the performance of company and are show how is company…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: Why does a balance sheet balance (assets = Liabilities + OE)?

A: Accounting is done on double entry system, in which we book any financial transaction into books at…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: what is creditor and debtor?

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: What is the distinction between debtor and creditor?

A: Accounts receivable Accounts receivable refers to the amounts to be received within a short period…

Q: What are the benefits of financial reporting?

A: Financial reporting is a detailed record of all corporate activities, including costs and profits,…

Q: What is accrual accounting?

A: Accrual basis of accounting is an accounting method based on which accrual transaction are recorded…

Q: What does the accrual-accounting model measures?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What are the benefits of pro forma financial statements?

A: Pro forma financial statement:Pro forma financial statements is a report which are prepared on the…

Q: What is the difference between cash basis accounting and accrual basis accounting?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is the difference between the cash basis and the accrual basis of accounting?

A: The accounting is a process to identify the business transactions, record the transactions and…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: Distinguish between financial liabilities and non-financial liabilities.

A: Liabilities are defined as the amount of money which is owed by a firm in exchange for goods and…

Q: What are the differences between a debtor and a creditor?

A: Creditor: Creditor is a person or a company who has provided fund or loan, and hence, has a claim…

Q: Why is financial reporting important?

A: Financial reporting refers to the practices whereby companies report the financial statement. These…

Q: What assumption is made regarding the external users of financial statements?

A: Financial Statements: The organization records the financial information related to transactions.…

Q: Is any special accounting treatment required for the assigning of accounts receivable in general as…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: What is accrual vs cash basis accounting. Explain with examples?

A: Under accrual basis of accounting, transactions are recorded & recognized as and when they…

Q: What is a financial instrument?

A: Introduction: A financial instrument is a physical or computer-generated document showing a legal…

Q: What are the various forms of interest-bearing transactions

A: The various forms of interest-bearing transactions of explanation:

Q: What is accural vs cash basis accounting. Explain with examples?

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: What accounting theory is applied in the treatment of interest of non-interest bearing notes?…

A: Solution Concept Non interest bearing notes                 Non interest bearing notes means the…

Q: How are liabilities classified? Why is it important to classify liabilities?

A: A liability is a present obligation of the enterprise arising from past events, the settlement of…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

Q: What’s financial instrument

A: Financial instruments can be broadly divided into: a. cash instruments b. derivatives instruments

Q: Why aren’t transactions involving accounts payable considered to be financing activities?

A: Answer: Accounts payable is current liability which is used in computing working capital, excess of…

Q: What is the difference between liabilities and assets?

A: The balance sheet represents the financial position of the business with assets and liabilities at…

Q: Define what is an off-balance sheet activity? Also provide example of an off-balance sheet an…

A: Off-Balance sheet Activity means the assets or liabilities which are not reflected in the balance…

Q: accrual vs cash basis accounting? Explain with e

A: Accounting is a medium of communication, like any language that we use. For example, two people can…

Q: ._______ It is the difference between a firm’s assets and its liabilities

A: An Asset is something owned and controlled by an entity that has some economic benefits.   A…

Q: Identify the relationship between money, credit?

A: Money is considered as the financial medium exchanged between parties that enable the transaction.…

Q: What is the difference between fully secured liabilities, partially secured liabilities, and…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Is a liability a debit or a credit?

A: Liability is an obligation for any business entity. It simply means that the entity has owed…

Q: How are the balance sheet and income statement affected by fair value accounting?

A:

Q: In financial accounts, how are interfund transactions accounted for

A: An accounting firm's financial statements serve as concise summaries of its activities, conveyed…

Q: Then what was the difference between a creditor and a debtor?

A: In normal course of business goods are sold and Purchased in cash and on account. Every business has…

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: So, should I be using accrual rather than cash-basis accounting?

A: Introduction : The cash and accrual basis of accounting are two accounting procedures that are now…

Q: What occurs when a business factors its receivables?

A:

Q: whats the difference between an expense and liability according to accounting?

A: Accounting: Accounting is defined as recording, summarizing and classifying the financial…