State with reasons, whether the following statements are true or false : (i) Overhauling expenses for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
State with reasons, whether the following statements are true or false : (i) Overhauling expenses for the engine of motor car to get better fuel efficiency is revenue expenditure. (ii) Depreciation is a non-cash expense and does not result in any cash outflow. (iii) Fees received for Life Membership is a revenue receipt as it is of recurring nature. If Closing Stock appears in the Trial Balance: The closing inventory is then not entered in Trading Account. It is shown only in the balance sheet. (iv) (v) Inventory Turnover Ratio is also known as Stock Turnover Ratio. (vi) If del-credere commission is paid to consignee, the loss of bad debts is to be borne by the consignor. (b) Discuss the limitations which must be kept in mind while evaluating the Financial Statements. (c) A Plant & Machinery costing 10,00,000 is depreciated on straight line assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by 40,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year. 6x2 =12 State with reasons, whether the following statements are true or false : (i) Overhauling expenses for the engine of motor car to get better fuel efficiency is revenue expenditure. (ii) Depreciation is a non-cash expense and does not result in any cash outflow. (iii) Fees received for Life Membership is a revenue receipt as it is of recurring nature. If Closing Stock appears in the Trial Balance: The closing inventory is then not entered in Trading Account. It is shown only in the balance sheet. (iv) (v) Inventory Turnover Ratio is also known as Stock Turnover Ratio. (vi) If del-credere commission is paid to consignee, the loss of bad debts is to be borne by the consignor. (b) Discuss the limitations which must be kept in mind while evaluating the Financial Statements. (c) A Plant & Machinery costing 10,00,000 is depreciated on straight line assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by 40,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year. 6x2 =12
Expert Answer:
Related Book For
Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner
Posted Date:
Students also viewed these accounting questions
-
State with reasons whether the following statements are true or false. a. In the model Yi = B1 + B2Di + ui, letting Di take the values of (0, 2) instead of (0, 1) will halve the value of B2 and will...
-
State with reasons whether the following statements are true or false: a. Despite perfect multicollinearity, OLS estimators are best linear unbiased estimators (BLUE). b. In cases of high...
-
State whether the following statements are true or false and explain why. (a) It is more difficult to estimate a population proportion precisely if its value is near 0.50. (b) A 2 goodness-of-fit...
-
How can a layer fold and boudinage (extend) at the same time?
-
Use a flux plot to estimate the rate of heat flow through the object shown in the sketch. The thermal conductivity of the material is 15 W/(m K). Assume no heat is lost from the sides.GIVENThe shape...
-
How does Starbucks manage diversity? What is Starbucks doing to manage diversity in each of the four areas: customers, suppliers, partners, and communities?
-
In the context of a company limited by shares, who has limited liability - the company, its directors, its shareholders or its employees?
-
Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course....
-
Pete's Real Estate is currently valued at $84,000. Pete feels the value of his business will increase at a rate of 10% per year, compounded semiannually for the next 4 years. At a local fund-raiser,...
-
This chapter discusses the data dictionary views for Oracle 12c. Research another RDBMS, such as Microsoft SQL Server, and report on its data dictionary facility and how it compares with Oracle.
-
1. Why can everyone in society be considered a potential consumer of health services? 2. Why didn't the healthcare industry historically view patients as consumers?
-
The Berjaya Manufacturing Company (BMC) produces an industrial chemical product. At the beginning of the year, BMC had the following standard costing sheet: Direct materials (10 kg at RM1.60) Direct...
-
1. In the political spin industry, firms face a fixed cost of entry of $3,000. These firms sell Beautiful Statements on the current political situation. Beautiful Statements can be produced at zero...
-
One of the important concepts we are learning this week is PPP (Purchasing Power Parity). The Big Mac Index is a fun idea demonstrating the PPP using just one good, the McDonalds's big mac. Pick a...
-
Current debates about ideas to revive the economy generally fall into alignment with either classical or Keynesian economic theory. Some suggest that growing U.S. debt is a strong incentive for tax...
-
What is the present value (aka price) of a 27-year, pure discount bond (zero coupon bond) that pays $1000 at maturity if it is priced to yield 8.07% per year (YTM)? Answer to 2 decimal places.
-
These are six questions. What are the three main goals of a traditional food logistics? Why food supply chain should be based on values rather than products? What food logistics values is promoting...
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
In a population of flatworms (Planaria) living in a certain pond, one in five individuals is adult and four are juvenile.37 An ecologist plans to count the adults in a random sample of 16 flatworms...
-
For each of the following normal quantile plots, sketch the corresponding histogram of the data. Normal scores Normal scores
-
Suppose you are planning an experiment to test the effect of a certain drug treatment on drinking behavior in the rat. You will use a two-tailed t test to compare a treated group of rats against a...
-
When evaluating the reasonableness of the accounting estimates as provided by the management of the client, the auditor shall perform the following except: (a) The auditor should evaluate, based on...
-
In which of the following situations the auditor is likely to audit accounting estimates: (a) Allowance for doubtful accounts (b) Reserve for obsolete inventory (c) Changes in the useful life of...
-
Doxa Company is a US North-East regional frm in the business of selling red widgets Doxa Company has historically experienced a warranty expense of 0.2% of sales In FY 2017, it sold $500,000 of red...
Study smarter with the SolutionInn App