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?
-
Let Find the right inverse of A by setting up and solving the linear system A X = I. Verify that the resulting matrix X is also a left inverse. 10
-
What is the difference between a warrant to purchase a stock and an exchange-traded stock option?
-
Sohan Singh has started transport business with a fleet of 10 taxis. The various expenses incurred by him are given below: (a) Cost of each taxiRs 75,000 (b) Salary of office staffRs 1,500 p.m. (c)...
-
Clarity Communication issued $42,000 of 8%, 10-year bonds payable on October 1, 2012, at par value. Claritys accounting year ends on December 31. Requirements 1. Journalize the issuance of the bonds...
-
Phambili ( Pty ) Ltd is a property development company located in Pretoria North, owning several pieces of land in the Dinokeng area, both in residential and farming estates near Roodeplaat Dam. The...
-
The accountant preparing the financial statements has asked you to provide the fair value as of the end of the year for the investments. Present the information as it would be shown on the financial...
-
A nation whose population profile shows the widest bars in the 40 to 60 age groups with narrower bars for older and younger age groups most likely reflects Group of answer choices the impact of...
-
the assessment include developing gantt chart, work breakdown structure and and all task 3 are related to its respective task 2. all the instructions are given in the assignment itself. Assessment...
-
Mens heights are normally distributed with mean 68.6in. and standard deviation 2.8in. Air Force Pilots The U.S. Air Force required that pilots have heights between 64 in. and 77 in. Find the...
-
Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city....
-
ACC1810 - PRINCIPLES OF FINANCIAL ACCOUNTING Project 11: Chapter 11 - Stockholders' Equity Part B: Financial Statements The accounts of Rehearsal Corporation are listed along with their adjusted...
-
Match the term to the description. Outcome evaluation Focuses on the accomplishments and impact of a service, program, or policy and its effectiveness in attaining its outcomes set prior to...
-
Will like answer thanks 6 Exercise 6-7 Target Profit Analysis (LO6-6) 1 points Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit....
-
At Glass Company, materials are added at the beginning of the process and conversion costs are added uniformly. Work in process, beginning: Number of units Transferred - in costs Direct materials...
-
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...
-
Jamie Lee has decided to purchase a certified, preowned vehicle. What might she expect as far as reliability and a warranty on the used car?
-
What daily spending items are amounts that might be reduced or eliminated to allow for higher savings amounts?
-
Jamie Lee is attracted to the low monthly payment advertised for a vehicle lease. She may well be able to afford a more expensive car than she originally thought. Jamie Lee really needs to think this...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App