Accounting Quizzes Online & Trivia

1. The origin of the information that is recorded into the accounting books

Why? Could you please explain your reasoning and expand on your thought process so we can understand why this is the correct answer?

Assets = Liabilities + Owner s Equity

Please explain.....$320,000 doesn't make sense to me.

1. When it can be reliably measured2. When it is probable that economic benefits will flow to the entity from the asset

The cost of land should include the cost of removing unwanted buildings and the cost of grading and clearing the land. In other words, the correct answer is D: both A and B. When you’re buying land for a business, you have to take into account many things. Once you actually settle on a piece of land, you need to make sure that you can pay to have it cleared of unwanted buildings and to make it usable. You can’t just build on any piece of land, unfortunately. This means that you have to make sure you have the money not only to buy the land, but to make all the necessary changes to the land. The best way to do that is to do your research ahead of time.

They will remain the same as production levels change within the relevant range

The correct answer to this question is C, Acquisition value for a subsidiary. IFRS stands for International Financial Reporting Standards. These standards are used in accounting. It provides a guideline for how companies prepare their financial statements, as well as how they disclose it. This guideline is not set in stone and not deemed as a specific set of rules. IFRS's are essential to companies that have subgroups in different countries. There are currently over 100 countries who require the use of IFRS. These standards can also be used to help credit ratings, along with helping the company meet compliance.

What piece of company information better explains companies stock price performance?1. Balance Statement

Generally, we think profit is the total return we have left after the capital, and other expenses have been deducted. However, economic profit is different from accounting profit. The difference between the total cost and the total revenue, leaving out the value of the opportunity is what is referred to as the accounting profit; while economic cost, on the other hand, is the difference between the total cost and the total revenue without excluding the cost of the opportunity. Economic profit can be defined as revenue deducted from implicit and explicit costs, and accounting profit is the total revenue deducted from the explicit fees. Accounting costs are calculated for a definite period, unlike the economic profit; and the economic profit will always be of lesser value. When accounting profits are calculated, things like allowances, leased assets, provisions, capitalizing development cost, and non-cash transactions are considered; but when economic benefit is calculated, many things like interest rate on the flow of cash, tax rates, residual value, opportunity cost, and inflation level changes are taken into account.

FINANCIAL DEBT, OPERATIONAL DEBT, MANAGEMNT DEBT

A management accountant should consider the cost relevant when the expected future cost will be different for each option. It should be remembered that there are different paths that things can undergo. The choice that will be made by the management accountant now will have an impact on what the future is going to be. The different alternatives will be enough for the businesses to have a choice. There are some businesses that fail because the managers failed to recognize the best option available depending on the business’ finances and all the other factors that ought to be considered. In making decisions, the goals and objectives of the company should be taken into account too.