When five vehicles are used for a single business, what expense method must be applied?Different methods of claiming vehicle expenses can be used for each vehicle.The actual expense method must be used for all vehicles.The standard mileage rate must be used for all vehicles.The second and third vehicles must use the actual expense method.

The correct answer is: The actual expense method must be used for all vehicles.Explanation:The…

Answered: When five vehicles are used for a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 2MC: Which of the following best represents the matching principle criteria? A. Expenses are reported in...

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Distinguish between the concepts of expense and asset.Support your answer by using an example to demonstrate the difference. Answer in 250 words or less.
14. Entities must allocate the cost of all goods available for sale between a. the cost of goods on hand at the beginning and the cost of goods purchased during the period b. the cost of goods on hand at the end and the cost of goods purchased during the period c. the income statement and the statement of financial position d. all the choices are correct.
The expense matching principle states that: Multiple Choice Expenses are recognized when paid. All expenses are recognized when the corresponding revenue is recorded. Some expenses are recognized when the corresponding revenue is recognized and some are spread over time. Expenses are recognized when the invoice is received.
Fuel and vehicle repairs have been recorded under one account as motor vehicle expenses it's True or false
Which of the following best represents the matching principle criteria? Revenue is recognized when an order occurs and not when the actual sale is initiated. Expenses must be reported in a different period than the matching revenues. Revenue and expenses are matched based on when expenses are paid. Expenses are reported in the period in which they were incurred. 0000
Based on the partial trial balance below, prepare the Statement of Income (SCI) with supporting notes to the financial statements Make sure that the Statement of Income has the following: Net Purchases- X,XXX,XXX. Total Gross Income- X,XXX,XXX. Total Marketing and Selling Expenses- XXX,XXX. Total General and Administrative Expenses- XXX,XXX. Total Manufaturing Cost - X,XXX,XXX. Total Cost of Goods Sold- X,XXX,XXX. Total Cost of Goods Manufactured- X,XXX,XXX. Total Factory Overhead- X,XXX,XXX Net Income After Tax- XXX,XXX.
Expense recognition is implemented by one of four different approaches, depending on the nature of the specific expense. Describe about the approaches.
Which is wrong? The term creditable input VAT means input VAT deductible from output VAT. Input VAT on personal consumption are creditable against output VAT. Only input VAT for purchase of goods or services in the course of business is creditable. Input VAT needs to be evidenced by a VAT invoice or VAT official receipt to be creditable.
Directions: Read the given sentences carefully. Select the best answer from the choices given below. Write your answer on the space provided before each item. Gains Purchases Sales Income Gross Profit Sales Discount Selling expenses Professional Fee Net Income Operating expenses Sales return Cost of Goods Sold Service Income 1. An example of service revenue. 2. The revenue generated from the sale of products. 3. It is computed by deducting the cost of sales from net sales. 4. It is used to describe revenue derived from the rendering of services. 5. A type of income derived from the other activities of the business. 6. The account used to report the acquisitions of merchandise for sale. 7. It represents the actual cost of inventories that the company was able to sell. 8. These are expenses that are directly related to the main purpose of a merchandising business 9. A contra-sales account that is used to report the amount of discount given to or taken by the customers. 10. It refers…
Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. b. Selling inventory. c. Providing manufacturer warranties. d. Selling magazine subscriptions.
Which of the following is an example of expense? Select one: a. Purchasing a vehicle b. Purchasing cleaning services c. Purchasing equipment d. Buying a computer
Write an analysis of the five revenue-recognition steps. Apply the five revenue-recognition steps per ASC Topic 606 or FASB Accounting Standards Update (ASU) No. 2014-09 to Stella’s sales transaction on the next page. Before applying each step, describe the requirements of that step, and quote relevant ASC 606 sub-topics using Revenue Recognition-Brief-Roadmap-by-AICPA.pdf. Provide an explanation/justification for how you apply the requirement by referring to the relevant guideline in the standard. Tip for Step 2: You will identify the number of performance obligations in the contract and describe what they are along with why they are separate performance obligations. Step 2 is related to Steps 4 & 5. So make sure that your answers in Steps 4 and 5 are consistent with each other and with the answer in Step 2. Tip for Step 4: Show the computation of the transaction price of each performance obligation. Be sure to consider the discount. Tip for Step 5: Specify (1) how…

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