Although the income statement is a record of past achievement, the calculations required for certain expenses involve
Question:
‘Although the income statement is a record of past achievement, the calculations required for certain expenses involve estimates of the future.’ What does this statement mean? Can you think of examples where estimates of the future are used?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
At the time of preparing the income statement it is not always possible to determine ...View the full answer
Answered By
Hillary Waliaulah
As a tutor, I am that experienced with over 5 years. With this, I am capable of handling a variety of subjects.
5.00+
17+ Reviews
30+ Question Solved
Related Book For
Financial Accounting For Decision Makers
ISBN: 9781405888219
5th Edition
Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor
Question Posted:
Students also viewed these Business questions
-
The income statement is a change statement. Explain what is meant by this.
-
Which of the following is false? (a) Under GAAP, companies cannot record gains on transactions involving their own shares. (b) Under IFRS, companies cannot record gains on transactions involving...
-
Ahold (NLD), in its consolidated income statement , reported settlement of securities class action 803 million loss. In what section of the income statement is this amount reported?
-
In the financial market, what causes a movement along the demand curve? What causes a shift in the demand curve?
-
Paolo and Alfredo are twins who both want to open pizza restaurants. Their parents have always liked Alfredo best, and they buy two pizza ovens and give both to him. Unfortunately, Paolo must buy his...
-
Has Dove begun to Re-touch the Real? 1. Is it Unilevers job to promote self-esteem among women, or is it the companys role to get the Dove brand into the hands of consumers? 2. What are examples from...
-
Support equipment used to drill a development well cost $13,000 and has a 10-year life with a salvage value of $1,000. The equipment was used for three months in drilling Badger #1. Record...
-
Peete Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Instructions Analyze the transactions...
-
5x+2z = 133 Identify the surface by type (paraboloid, ellipsoid, etc.) Choose the correct graph of the equation below. OA B. O C.
-
Schneiders Sweet Shop specializes in homemade candies and ice cream. Schneider produces its ice cream in-house, in batches of 50 pounds. The first stage in ice cream making is the blending of...
-
You have been talking to someone who had read a few chapters of an accounting text some years ago. During your conversation the person made the following statements: (a) The income statement shows...
-
You have heard the following statements made. Comment critically on them. (a) Equity only increases or decreases as a result of the owners putting more cash into the business or taking some out. (b)...
-
Visit openwebanalytics.com and compare the functionality of this open source tool with its competitors. Distinguish between the two. Why would companies purchase web analytics solutions?
-
Garfield has been registered for VAT since 1 April 2017. His business is situated in Great Britain. His partly completed VAT computation for the quarter to 31 March 2024 is shown below. The figures...
-
Phoebe made the following transfers during 2023-24: None of the gifts are regarded as normal expenditure out of income. Phoebe made no transfers at all during 2022-23. Calculate the value of each of...
-
On 12 November 2013, Hazel made a gross chargeable transfer to a relevant property trust of 266,000 (after deduction of exemptions). On 1 April 2019 she gave 300,000 to her grandson. These were her...
-
Tony died on 11 July 2023, leaving an estate which was valued at 900,000. None of the transfers made on his death were exempt from IHT. He had made the following transfers during his lifetime:...
-
Tracey is a sole trader. She has the following transactions during the quarter to 31 December 2023 (all amounts shown are VAT-exclusive): Tracey drives a car with an emission rating of 118 g/km and...
-
The Canadian government wants to know the relative age of its workforce. As the ?baby boom? generation becomes older, the government is concerned about the availability of younger, qualified workers....
-
Solve each equation or inequality. |6x8-4 = 0
-
The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection. The amount of labour likely to be available...
-
The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection. The amount of labour likely to be available...
-
A hotel group prepares financial statements on a quarterly basis. The senior management is reviewing the performance of one hotel and making plans for next year. The managers have in front of them...
-
Ariana and John, who file a joint return, have two dependent children, Kai and Angel. Kai is a freshman at State University and Angel is working on her graduate degree. The couple paid qualified...
-
The Foundational 15 [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format...
-
Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line...
Study smarter with the SolutionInn App