How is depletion calculated?
Depletion is calculated by: Depletion = Total cost – salvage value/ Total number of estimated units. The expense is calculated... View Article
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What is the cost depletion method?
Cost depletion is one of two accounting strategies used to dispense the expenses of extracting natural assets, like lumber, minerals,... View Article
What is a depletion base?
The base of charging depends on the assets, which are based on the total cost of the asset which includes... View Article
How do you show a suspense account on a balance sheet?
In the event that a suspense account isn’t shut towards the end of a bookkeeping period, the remaining or the... View Article
What is the objective of the balance sheet?
The main objective behind preparing a balance sheet is to give invested individuals an idea of the organization’s monetary situation,... View Article
What is in the balance sheet?
The balance sheet is the fiscal summary of an organization that incorporates equity capital, total debt, liabilities, equity, and so... View Article
What are the 3 steps in the accounting process?
The three steps in the accounting process are: Collection stage of accounting. Processing stage of accounting. Reporting stage of accounting.
What is Marshalling in law?
An equitable remedy to do justice between two or more creditors, each of which is owed a debt by the... View Article
What are the types of marshalling?
The types of Marshall of are: Order of permanence Order of liquidity Mixed order Also see: Marshalling of Assets and... View Article
What do you mean by marshalling in the balance sheet?
Marshalling of the balance sheet is concerned with the arrangement of placing the assets and liabilities in proper order in... View Article
_____________ _ is an example of a fixed asset.
(A) Value stock (B) Livestock (C) Income stock (D) None of these Answer (B): Livestock Explanation: Livestock is an example... View Article
The formula used to calculate the current ratio is _______________ _ .
(A) Current liabilities / Current assets (B) Current assets / Current liabilities (C) Inventory / Current liabilities (D) Current liabilities... View Article
Which of the following is the Capital market line?
(A) Capital allocation line of a market portfolio (B) Capital allocation line of a risk-free asset (C) Both 1 and... View Article
Which of the following is the goal of financial management?
(A) Maximise the wealth of Equity shareholders (B) Maximise the wealth of Preference Shareholders (C) Maximise the wealth of Debenture... View Article
What is Factoring?
(A) Production Plan (B) New Financial Service (C) Cost of Sales (D) All of the above Answer (B): New financial... View Article
What is grouping in accounting?
In accounting, Grouping is concerned with giving comparable things comparable characteristics together. They are displayed under a typical head inside... View Article
What are liabilities in simple words?
A liability is something an individual or organisation owes, typically an amount of cash. Recorded on the right half of... View Article
What do you mean by normal and abnormal loss?
Normal loss is the misfortune that happens because of the nature of the products consigned. Its tendency is as per... View Article
What is an abnormal loss in cost accounting?
Abnormal loss in cost accounting is the misfortune that happens well beyond normal loss or misfortune. If there should be... View Article
How do you solve an abnormal loss?
Abnormal loss = {Normal cost at normal production / (Total output – normal loss units)} X Units of abnormal loss.... View Article
