Question

QUESTION Z Amortization is a term which means the same as Depreciation. Which of the following standards discourages but does NOT restrict the use of the term "Amortization" on depreciable assets? IFRS OCICA O ASPE GAAP QUESTION 8 Adjusting entries are needed O never if you are reporting on an annual basis. o every time financial statements are prepared. o every time cash is received. o every time expenses are incurred or revenue is performed. Click Save and Sub . Save All

Answer 1

Note - As HOMEWORKLIB RULES guidlines we are alloewed to process 1 question at a time. When there are multiple question we can do 1st one

Q.8 Every time financial statements are prepared.

Explanation -

Adjusting entries are usually made at the end of the year. Which specifies the entries which needs to be enter in the current period. Those generally includes Depreciation, Supplies expenses, Rent and Insurance Expired in the period, Accrued Salaries and Taxes Expenses.

All those entries expense out those transactions that needs to be accounted in the current period.

Q.9 Owner's Capital

Explanation -

Except Owner's Capital which is part of balance sheet all other items are adjusting entries.

Q.10 All Temporary Accounts

Explanation -

Closing Entries are required to close the income statement items as they are not the items which are going to carry forward in the next account period, hence those items needs to be closed and transfer to capital account.

Hence we need to close all the temporary accounts which will not reflects in the balance sheet.

Q.11 After the Financial Statements are prepared.

Explanation -

Closing Entries are made once we have transferred all the transactions and all the financial statement are prepared then we have to close some temporary accounts which will not be reflected in the balance sheet. Hence those needs to be close after the financial statements are prepared.

Q.12 Is found by Calculating the difference between the Income Statement column totals on the Worksheet.

Explanation -

Net Profit in the worksheet can be found by taking difference of debit and credit from the income statement. If credit balance exceeds there will be profit and if debit balance exceeds then there will be loss for the period.