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1 year ago

Accruals occur when the cash flow precedes either revenue or expense recognition.

Business

1 answer:

Tamiku [17]1 year ago

5 0

Accruals do not occur when the cash flow precedes either revenue or expense recognition.

So, the given statement is False.

Accruals are the amount that the entity owes or that the entity must pay in the forthcoming period. In the cash flow statement, accruals are first noted as the items that link profits to cash flows. However, they are not the accruals used to calculate earnings; rather, they are adjustments to balance-sheet items, with the applicable accruals being subtracted from the cash flow.

Accrued costs go under current liabilities on the balance sheet. Using the accrual method of accounting, balance sheets and income statements are created. With this approach, earnings and costs are recorded as they happen rather than after payment. When a transaction is documented as having occurred rather than when a payment is made or received, this accounting approach is known as accrual accounting.

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An accounting transaction may impact only one financial statement or multiple statements. true false

anyanavicka [17]

Answer:

The given statement is True

<h3>Explanation:</h3>

It retained earnings and balance sheet.

The retained earnings of a corporation are the accumulated net income of the corporation that is retained by the corporation at a particular point in time, such as at the end of the reporting period.

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2 years ago

Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment

AysviL [449]

Balance Sheet and income statement account include supplies, amount payable for interest and salaries.

<h3>What is a Balance Sheet?</h3>

Balance Sheet are financial statement that shows a company's assets and liabilities.

The pair of balance sheet and income Statement account that can require adjustment include,

Supplies of goods and services
Unearned Revenue
Salaries and Wages Payable
Interest Payable
Income Tax Payable Balance

This adjustment is dependent on the amount of increase or decrease that is made on the account.

Therefore, Balance Sheet and income statement account include supplies, amount payable for interest and salaries.

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2 years ago

Kahuna Industries has two manufacturing departments--Fabrication and Finishing. The company used the following data at the begin

Morgarella [4.7K]

Answer:

Total manufacturing cost= $34,052

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total estimated overhead= 33,400 + (2*4,000 + 4*1,000)

Total estimated overhead= $45,400

Predetermined manufacturing overhead rate= 45,400 / 5,000

Predetermined manufacturing overhead rate= $9.08 per machine hour

<u>Now, we can determine the total manufacturing cost of Job 15-Z:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= (1,300 + 600)*9.08= $17,252

Total manufacturing cost= 8,400 + 8,400 + 17,252

Total manufacturing cost= $34,052

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3 years ago

Pier shops in a Rowdy Ranch & Farm Store store. Enticed by a display, Pier takes an item to examine it and, when she is done

Fudgin [204]

Answer:

The correct answer is letter "B": a duty to discover and remove the hazard.

Explanation:

According to the hierarchy of Hazard Control, there are five (5) layers on determining the actions that should be taken in front of a dangerous situation. Those layers include <em>protecting workers with Personal Protection Equipment (PPE), changing employees' methods of working implementing administrative controls or engineering controls, substituting the hazardous element, or completely eliminate. </em>

Thus, <em>the elimination or removal of the hazardous element after discovering it is the most effective measure to take to avoid any damages to other individuals, employees or not.</em>

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4 years ago

Hodge Co. exchanged Building 24 which has an appraised value of $4,971,000, a cost of $7,691,000, and accumulated depreciation o

VLD [36.1K]

Answer:

Hodge Co. Books

Debit : Building M $4,163,000

Debit : Accumulated Depreciation Building 24 $3,528,000

Credit : Cost of Building 24 $7,691,000

Fine Co. Books

Debit : Building 24 $4,283,000

Debit : Accumulated Depreciation Building 24 $4,796,000

Credit : Cost of Building 24 $9,079,000

Explanation:

Where an exchange transaction lacks commercial substance, the accounting standard IAS 16 requires that the Asset that is <em>acquired</em> is measured at the Carrying Amount of the <em>Asset given up</em>, and <u>no gain or loss</u> can be estimated reliably.

Carrying Amount is Cost of Asset <em>minus</em> Accumulated Depreciation

The Carrying Amounts for Building 24 and Building M can now be calculated as follows -

Carrying Amount :

Building 24 = $7,691,000 - $3,528,000 = $4,163,000

Building M = $9,079,000 - $4,796,000 = $4,283,000

Then, apply the Carrying Amounts as new cost of assets acquired for Both Companies as required by the standard.

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3 years ago