Why is the distinction between a conditional and unconditional contribution important for accounting purposes?

Q: Fair Value measurement

A: Fair value is the estimated selling price of an asset or settlement price of a liability.

Q: What are the quantitative disclosures that must be done by lessee?

A:

Q: In term of the detir Theory. which stat coherent set? а. Accounting theory inquiry

A: Accounting theory is the statement of Principles and Methodology of Accounting.

Q: What is a performance obligation, and how is it used todetermine when revenue should be recognized?

A: The performance obligation is the promise made by the business entity to provide the goods or…

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: Describe the accounting applications of present value techniques.

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: In what way may the use of percentage depletion violatesound accounting theory?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: The expense recognition principle relates

A: Expense recognition is based on accrual and matching concept where accrual concept states that…

Q: You and your colleagues Yusuf a Accounting. You were discussin following: - The total fair value of…

A: When a company is substantially acquired by another company, its accounts are consolidated with the…

Q: what is the difference betwwen classifying an expense by nature or function?

A: The costs that are incurred to earn revenues in the process of operating activities of the business…

Q: What is fair value accounting?

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

Q: Contrast the constructive receipt doctrine with the claim of right doctrine.

A: As per the constructive receipt doctrine, a tax payer is required to pay taxes on income even if the…

Q: Emoluments, pensions and gratuities, as well as debt service charges are categorized asdevelopment…

A: First of all we need to understand the basic meaning of Development expenditure. Development…

Q: Understand the concept of relevant revenues and costs. What makes a revenue or cost relevant?…

A: solution concept relevant revenue                 relevant revenue means the revenue which has the…

Q: What is the guiding objective is that lessees and lessors provide disclosures?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

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: 1. What is the difference between accounting anc economic profit?

A: Solution Note as per the Q&A guideline we are required to answer the first question only. Please…

Q: what are some fundamental challenges in accounting and reporting for a noncontrolling interest?

A: In deliberations prior to issuance of SFAS 160 "Non controlling interest in consolidated financial…

Q: What is the impact of deferred annuities in consideration to business matter?

A: The legal contract between any entity and an insurance company is a deferred annuity contract. The…

Q: Which of the following best describes the application ofgenerally accepted accounting principles to…

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: what are the concepts of revenue recognition?

A: Definition:   Revenue recognition principle: Revenue recognition principle states that every…

Q: What is profit contribution

A: The profit is calculated as difference between total revenue earned and total expenses incurred.

Q: What are the quantitative disclosures that must be done by lessor?

A:

Q: Overall do you agree or disagree with the argument that financial statements should be stated as…

A: Historical cost refers to the original purchase cost of an asset whereas fair value is an estimate…

Q: What is meant by net income and net loss?

A: When the company has more amount of revenue it would have positive income whereas when company has…

Q: Which of the following is not a component of other comprehensive income under GAAP? earnings gains…

A: Other comprehensive income means those items of revenues and expenses that are not part of Profit…

Q: In accounting terms, what is the difference between profit and loss

A: Accounting is based on the principle of double-entry. It may be described as how a company records…

Q: What is the revenue recognition principle?

A:

Q: allocation of income or loss to have economic effect

A: Income or loss is the net result of operational activities of a business conducted during a…

Q: Fair value is a more relevant measure to use in Financial Reporting than Historical Cost. Discuss

A: Introduction: Fair value accounting refers to the practice of valuing your company's liabilities and…

Q: How does EVA differ from accounting profit?

A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…

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: 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: The purpose of a statement of retained earning is to ?

A: Statement of Retained earnings is prepared to show the details of changes occurred in equity over an…

Q: How are deductions and losses different? How are they similar? Explain

A: Deductions: As deductions, the existing expenses made for the development of current period profits…

Q: what is asset? what is gross profit?

A: Financial statements: These are the financial reports prepared by an organization for a financial…

Q: What type of basis is it called when we report only the amounts actually collected and/or spent?

A: There are two methods of accounting. One is cash basis and other is accrual basis.

Q: Explain why it is important to distinguish between capital expenditure and revenue expenditure, and…

A: Expenditures: The Expenditures are the way of spending money on something, or the money that is…

Q: What are some of the possible costs that could result from a revision of an accounting standard?

A: Financial Accounting Standards Board (FASB):   It is a private, non-profit organization which is a…

Q: How does EVA differ from accounting net income?

A: Economic Value Added and accounting net income are the methods of businesses that can be used to…

Q: income be affected

A: Operating income is the amount of revenue realized from the operations of the business, after…

Q: Is profit an asset or liability?

A: profit or income are generally classified under assets.

Q: What are the issues involved in determining if signing a bonus is an asset or an expense?

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