User Account

All Pages

What will be consequences if an accountant wrongly treat

Assignment Help Financial Accounting
Reference no: EM132545496

The following costs were also incurred by Ali company Ltd during the financial year ended 30June 20X7:

a) Interest on loan to purchase microcomputer.

b) Cost of software for use with the microcomputer.

c) Cost of customizing the software for use in Napa Ltd.'s business.

d) Cost of paper used by the computer printer.

e) Wages of computer operators.

f) Cost of ribbons used by the computer printer.

g) Cost of adding extra memory to the microcomputer.

h) Cost of floppy disks used during the year.

i) Costs of adding a manufacturer's upgrade to the microcomputer equipment.

j) Cost of adding air conditioning to the computer room.

Required:

Question 1. Classify each of the above as capital expenditure or revenue expenditure.

Question 2. What will be consequences if an accountant wrongly treats capital expenditures as revenue expenditure? Support you answer with a rationale.

Reference no: EM132545496

Questions Cloud

What effect of declining balance method on waller company : What will the effect of declining balance method on Waller company earning? determine annual depreciation using the straight-line method
What alternatives should timberlake consider : Timberlake's tax rate is 21 percent. What alternatives should Timberlake consider, and what are the tax consequences of the alternatives
Evidence property receipt : What types of evidence had fingerprints on them and what can fingerprint evidence inform us after being identified, collected, preserved, and examined?
How much is to be included as comprehensive income : Since the fair value of the asset can be determined at the end of each reporting period, How much is to be included as comprehensive income
What will be consequences if an accountant wrongly treat : What will be consequences if an accountant wrongly treats capital expenditures as revenue expenditure? Support you answer with a rationale.
Discuss community policing philosophy : Discuss the community policing philosophy. discuss your perception of the police officers' actions.
Brief of reflection on accountancy professionals : Brief of reflection on accountancy professionals' possible disregard for their agency role and the characteristics of a professional
Which investment will a risk-loving investor choose : Which investment will a risk-averse investor with a risk aversion coefficient of 3 choose? Which investment will a risk-loving investor choose?
What is cost of equity for xyz using constant dividend : If current dividend is $3.10 per share and is expected to grow at 3.5% per year, what is cost of equity for XYZ using constant dividend growth discount mod

Reviews

Write a Review

Financial Accounting Questions & Answers

  Where would the decrease in inventory over the period

Where would the decrease in inventory over the period of go in the Satement of cash flows?

  Define the primary task of psychology

What degree does each view understand the primary task of psychology to be about the acquisition of knowledge or understand the primary task of psychology

  Equity in subsidiary earnings

Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2010. Janex's reported earnings for 2010 totaled $432,000, and it paid $120,000 in dividends during the year. On the consolidated financial statements for 2010..

  Calculate inventory turnover and days inventory on hand

Calculate inventory turnover and days' inventory on hand for 2010 and 2011. (Round to one decimal place.) If you did C4, refer to your answer there for CVS.

  Calculate adjusted tax basis in asset

ABC Company purchased business property several years ago, paying $25,000 cash and borrowing $80,000 to fund the acquisition. ABC also incurred $2,000 of freight costs for shipping the property to its business location. Over time, ABC has incurred $1..

  Apply the appropriate revenue recognition criteria

Apply the appropriate revenue recognition criteria to determine when revenue should be recognized for the various components of this transaction.

  What is best estimate of the company net operating income

Seyal Inc.'s contribution margin ratio is 55% and its fixed monthly expenses are $34,000. Assuming that the fixed monthly expenses do not change, what is best estimate of the company's net operating income in a month when sales are $94,000?

  What is the value of the ending inventory of product

Webster Company produces 35,000 units of product A, 30,000 units of product B, and 14,500 units of product C from the same manufacturing process at a cost of $385,000. A and B are joint products, and C is regarded as a by-product. What is the value o..

  What are purpose of accounting codes

In 100 words or more, What are purpose of accounting codes? How are accounting codes used to classify accounting transactions? In your opinion, who in the organization should be responsible for assigning accounting codes during system development?

  Compute the values for amazon and the values for wal-mart

Compute the 2014 values for Amazon and the 2015 values for Wal-Mart based on information in the financial statements Inventory turnover and Days of inventory.

  Prepare a pension worksheet for 2011

Prepare a pension worksheet for 2011 and accompanying computations and amortization of the loss. - Prepare the journal entries.

  Journalize and post the adjusting entry for bad debts

Journalize and post the adjusting entry for bad debts at December 31, 2012, journalize and post to the allowance account the following events and transactions in the year 2013

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd