The cost of new non-current assets is a cash payment not an expense in the statement of profit or loss? True False
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- Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash c.Temporary investments d.Accounts receivableWhat is the difference between the cash basis and accrual basis of accounting as to the following: -Expenses, in general -Depreciation -Bad DebtsNet Capital gain is an item of income, while net capital loss is not an item ofdeduction. a.true b.false
- Which of the following statements best distinguishes the difference between real and financial assets? financial assets appreciate in value; real assets depreciate in value. real assets are tangible; financial assets are not. real assets have less value than financial assets. financial assets represent claims to income that are generated by real assets.What is the largest estimated possible loss that could arise in a safe payment schedule? no need to explain a. Book value of recorded assets b. Book value of recorded non cash assets c. Fair value of recorded assets d. Any of the aboveTrue or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?
- What is the difference between "change in current assets" and "change in liabilities?Which sentence is incorrect? Select one: a. Depreciation is not the actual change in the value of the asset. b. Accumulated Depreciation account has effects on the cash flow statement. c. Accumulated Depreciation is called a contra asset account. d. Depreciation is the process of allocating the cost of an asset to expense, not a valuation process.38. Which of the following account statements regarding assets is not true? a. An asset represents a probable future economic benefit b. Assets are obtained or controlled as a result of past or probable future transactions c. Assets reported on the balance sheet include both monetary and nonmonetary resources d. Assets include costs that have not yet been matched with revenues
- In current purchasing power technique (a) Why is it necessary to consider monetary assetsseparately from nonmonetary assets? Analyze withexamples. (b) Why does holding monetary assets lead to apurchasing power loss, but holding nonmonetary assetsdoes not lead to a purchasing power loss? Analyze withexamplesThe modified accrual basis ______. Multiple select question. What solution is it below? (A) records receivables (B) is merely a "light" version of the accrual version is not equivalent to the cash basis (C) accrues expenditures when payable (D) does not recognize long-term assets and liabilitiesHow can the quality of financial statements be compromised? Discuss fully and explain, giving a numerical example, how the choice of a depreciation method can influence the accuracy of reportable earnings.