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Ugo [173]
3 years ago
12

Why do they say Accounting Equation is the basis for the preparation of statement of financial position in accordance to IFRS fi

nancial statement presentation ?​
Business
1 answer:
Luda [366]3 years ago
3 0

Answer:

The Statement of Financial Position (SFP) or Balance Sheet, shows the assets of the company on one side and then the way the funding that enabled these assets to be acquired on the other.

This is the basis of the Accounting equation which is:

Assets = Equity + Liability

One one side of the (SFP), you have the assets shown. These assets are added up to find the Net Total Assets.

The other side of the (SFP) will have the Equity and the liabilities listed. These are then added up too and they are to be equivalent to the amount of Assets.

This would therefore prove the equation that when you add up Equity and Liabilities, you get Assets.

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Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business.
lina2011 [118]

Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list:

Business Rewards

A deep sense of satisfaction

Being the one in control

Providing sustainable jobs and income for others

The opportunity to give back / community responsibility

The satisfaction of excellent customer feedback

Financial Rewards

After conducting additional research, what other business rewards can you add here?

Answer:

1. Independence and Flexibility

2. Learning opportunities

Explanation:

The rewards of having a business are tremendous and cannot be overemphasized. Hence, asides from the listed business rewards, here are two additional business rewards

1. Independence and Flexibility: One of the rewards of doing business is the independence that comes with it. As the business grows, a business owner gets to have the independence to work whenever he wishes, and have the flexibility of time to be active in business life and other events outside the business.

2. Learning Opportunities: business activities allows business owners to see and learn how certain aspects of the business is getting done. Even when there are employees to perform those functions, business owners still have the opportunity to see, learn, and understand how those activities are being carried out.

3 0
3 years ago
Debt is frequently incurred when plant assets are acquired. For example, debt may be incurred on the purchase of plant assets. D
Olenka [21]

Answer:

A. capitalize capitalize

Explanation:

All the expenses incurred to make the asset usable are capitalized and those expenses become the part of cost of that assets for which that are incurred. Interest on debt to purchase an asset and in case to construct the asset both are capitalized, because these expenses are essential to make assets usable for the business.

6 0
3 years ago
On January 1, 2014, the merchandise inventory of Glaus, Inc. was $1,200,000. During 2014 Glaus purchased $2,400,000 of merchandi
Xelga [282]

Answer: Option (C) is correct.

Explanation:

Given that,

Merchandise inventory(beginning inventory) = $1,200,000

Merchandise purchased = $2,400,000

Sales = $3,000,000

Gross profit rate on sales = 25%

Ending inventory of Glaus:

= Beginning inventory + Purchases - cost of goods sold

= $1,200,000 + $2,400,000 - [sales × (100-25)%]

= $1,200,000 + $2,400,000 - $3,000,000 × 0.75

= $1,200,000 + $2,400,000 - $2,250,000

= $1,350,000

5 0
3 years ago
noncash items, nonoperating items, and changes in current assets and liabilities are necessary adjustments to
notka56 [123]

Noncash items, nonoperating items, and changes in current assets and liabilities are necessary adjustments to <u>net income</u>

In accounting, noncash objects are monetary gadgets which include depreciation and amortization which can be protected inside the enterprise' internet profits, but which do now not have an effect on the coins go with the flow.

Those non-coins sports may additionally include depreciation and amortization, in addition to obsolescence. Property, plant and gadget resides on the balance sheet. Those items are taken at the earnings assertion in small increments called depreciation or amortization.

They ought to be incorporated within the assertion of coins flows in a phase classified, "Significant Noncash Transactions."

Learn more about Noncash items here:- brainly.com/question/14008987

#SPJ4

5 0
1 year ago
Tucker Electronic System's current balance sheet shows total common equity of $3,125,000. The company has 125,000 shares of stoc
Airida [17]

Answer:

The answer is $27.50

Explanation:

Total Common Equity(stock) as per book is $3,125,000

Total outstanding shares of equity(stock) is 125,000

Therefore, Tucker Electronic System's book values per share is:

$3,125,000/125,000

$25.

And the market value per share is $52.50

Therefore, the difference between the market value per share and book values per share is:

$52.50 - $25

=$27.50

4 0
4 years ago
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