What Is Loss Recognition Testing? RECOVE, RABIL1TY/LOSS RECOGNITION. QPV – GPV is the technique specified to test recoverability under both FAS 60 and FAS 97. It involves calculating the present value of noninvestment cash flows at the expected investment earnings rate, which is usually level. What is loss recognition? What Is a Recognized Loss? A
Do You Net DTA And DTL? DTA is presented under non-current assets and DTL under the head non-current liability. Both DTA and DTL can be adjusted with each other provided they are legally enforceable by law and there is an intention to settle the asset and liability on a net basis. Can deferred tax assets
What Type Of Account Is Purchases? The purchases account is a general ledger account in which is recorded the inventory purchases of a business. This account is used to calculate the amount of inventory available for sale in a periodic inventory system. Is the purchases account an asset? Purchase is the cost of buying inventory
Does The Heading Of A Balance Sheet Indicate A Period Of Time Or A Point In Time? The balance sheet heading should NOT state a period of time. Rather, it should state a moment in time, such as the last instant of an accounting period. The balance sheet reports amounts at a moment in time
Which Of These Refers To The Situation In Which One Party To An Economic Transaction Takes Advantage Of Knowing More Than The Other Party To The Transaction? Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. What is adverse selection
What Would Increase Assets And Increase Liabilities? For example, when a company borrows money from a bank, the company’s assets will increase and its liabilities will increase by the same amount. When a company purchases inventory for cash, one asset will increase and one asset will decrease. What increases an asset and a liability? debit:
Where Does Discount On Bonds Payable Go? Discount on Bonds Payable will always appear on the balance sheet with the account Bonds Payable. In other words, if the bond is a long-term liability, both Bonds Payable and Discount on Bonds Payable will be reported on the balance sheet as long-term liabilities. Where does discount on
When Goods Are Held By A Bailee Risk Of Loss Cannot Pass To A Buyer? When goods are held by a bailee, risk of loss cannot pass to a buyer. If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at
Is Bank Capital An Asset Or Liabilities? From an accountant’s viewpoint, bank capital is the bank’s total assets minus liabilities. In other words, the difference between the value of what it has and what it owes. A bank’s assets include cash, interest-earning loans like inter-bank loans, letters of credit, and mortgages. Is capital an asset
What Is Moral Hazard Quizlet? Moral hazard is the tendency for people to behave in riskier ways knowing that someone else bears the cost of those risks. What is moral hazard in economics quizlet? The moral hazard problem. What is moral hazard? It refers to the actions people take before they enter into a transaction