What is Temporal Method? Temporal Method is a method of foreign currency translation by which monetary assets and liabilities are translated at current rates, while nonmonetary assets and liabilities are translated at rates in effect when the particular item was acquired. Income statement items are translated at the average exchange rate for the period.
What is meant by “term bonds”? Term bonds are those bonds for which the entire principal is due in one payment.
What are tangible assets? Tangible assets are those assets that have physical substances and capabilities, such as property, plant, equipment, and other similar productive assets acquired by the company.
Define the term “Time Period Assumption” Time period assumption is the division of the enterprise’s life span into time periods that can be short as a month or a quarter, but rarely longer than a year.
What is T Account? T Account may be defined as an account that has a T-Shaped form and is used to analyze transactions.
What is a trade discount? Definition Trade discount is a rebate or allowance from the listed price granted by the seller to the buyer at the time of selling goods. Or Trade Discounts are those discounts offered to a certain class of buyers. Treatment of trade discount It is a discount which is given on …
What is meant by the term transaction? Any event that changes the financial position of a business concern and that must be recorded in the books of accounts is called a “Transaction“. It should be remembered that a transaction should be expressed in terms of money and should bring a change in the financial position of …