Accounting Answers

Directions: Research on the following financial analysis tools and give examples:

1. Horizontal Analysis of FS

X, a non-Government employee, receives Rs. 3,06,000 as leave salary at the time of retirement on February 20, 2021. On the basis of the following information, determine the amount of taxable leave salary: Basic pay: Rs. 18,000 per month since 2013; duration of service: 32 years; leave at the credit of X at the time of retirement: 17 months ; entitlement of leave salary: 45 days' salary for every year of service and leave availed while in service: 31 months.

what is the most used liquidity ratio that can be used to measure the proximity of cash position of a business

water and electricity expense in arrears at the end of the entity's finacial year is recorded in the finacial statement as

Select from the following list the qualitative characteristic (Predictive value, Confirmatory value, Materiality, Completeness, Neutrality, Freedom from error, Verifiability, Comparability) of useful information that best describes each of the following items:

1.In order to keep the financial statements simple, Carlaw Consulting shows three items on its income statement: Revenue, Expenses and Net income

2.The financial statements of Belbach Industries are audited on an annual basis by public accountants.

3.Rydell Corporation is contemplating an investment in Fryan Ltd. Rydell has requested a copy of the company’s year-end financial statements to assist them in their investment decision

4.Chemical Reaction Inc. operates in both the US and Canada and restates its US financial statements according to Canadian GAAP for its Canadian investors

5.The Controller for Location Inc. emphasizes that factual and unbiased information prevails in the preparation of the company financial statements.

An accountant has debited an asset account for $2,000 and credited an expense account for $4,000. Which of the following would be the correct way to complete the recording of the transaction?

Credit an asset account for $4,000.

Credit a liability account for $2,000.

Credit a shareholders’ equity account for $2,000.

Debit a shareholders’ equity account for $2,000.

During the month of August, Karlsson Industries had the following transactions:

Aug. 2 Paid cash for the August rent of $1,500

Aug. 6 Purchased supplies of $250 on account

Aug.10 Collected $5,700 from customers on account

Aug.15 Received $2,200 cash for services to be rendered in September

Aug. 21Paid for supplies purchased on account on August 6

Aug. 28 Billed customers for $7,500 for services provided in August

Aug. 31Paid $150 cash for utilities expense

For each transaction fill in the below table for the date of the transaction, the account name to be debited and credited and the effect on the respective account: increase to the account and for a decrease to the account

Choose the correct answer for each date

A. August 2nd

Debit account choose between: utility expenses, rent expenses, supplies, account receivable, accounts payable, cash, supplies expense, service revenue, Unearned revenue.

Effect :

Amount :

Credit account 

Effect

Amount

August 6th

August 10th

August 15th

August 21st

August 28th

August 31

Discuss the concept of the double entry and elaborate on its relevance to the duality concept