Explain the underlying rationale for recognizing expenses on the basis of systematic and rational allocation of asset cost. Explain the rationale for recognizing costs as expenses at the time of product sale. In some situations, costs are recognized as expenses at the time of product sale. The most conspicuous example of period costs is marketing expenses. Examples of costs treated as period expenses would include officers’ salaries, advertising, research and development, and auditors’ fees. In other situations, guidelines have been developed for recognizing costs as expenses or losses by other criteria. That is, losses result from events that are not anticipated as necessary in the process of producing revenue. The matching of losses to specific revenue should not be attempted because, by definition, they are expired service potentials not related to revenue produced. For example, an expense is usually voluntary, planned, and expected as necessary in the generation of revenue. Credit and debit: A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Income and Expenditure Account of the club is the equivalent of the Income statement of a trading concern. Similarly the purchases account is maintained separately by recording all goods bought for the sole purpose of resale relating to the accounting period. The accounting distinction between an asset, expense, loss, and prior period adjustment is not clear-cut. The important concept here is that the incurrence of the cost has resulted in the acquisition of an asset, a future service potential. But a loss is a measure of the service potential expired that is considered abnormal, unnecessary, unanticipated, and possibly nonrecur-ring and is usually not taken into direct consideration in planning the size of the revenue stream. Direct cause-and-effect relationships can seldom be conclusively demonstrated, but many costs appear to be related to particular revenue, and recognizing them as expenses accompanies recognition of the revenue. Oracle iSetup can be used for this.

To make things a little easier for you, here is a screencap of a spreadsheet that I created, where you can find some of the formulas that I find are the most common and how to use them. Different transaction types can use the same attribute name to represent values that are calculated in different ways or fetched from different places. After you define a name for a cell or range, you can use it in a formula. As the name suggests, FNDLOAD is useful for FND related objects. FNDLOAD is very reliable and stable, if used properly. Please test the FNDLOAD properly, so as to ensure that no unexpected data occurs. By doing so, downloading and extracting all the test data in GL Codes that might not be applicable for production. The Above command downloads all the templates defined for this Particular Data Definition. The script that downloads AME conditions allows you to download all conditions for a given transaction type or only those associated with a particular attribute or group of attributes. When they are separate it allows the accounts to be added up and kept in neat order.

List the emps who are either ‘CLERK’ or ‘ANALYST’ in the Desc order. List the emps who joined in January. List the emps along with their Exp and Daily Sal is more than Rs.100. An approver group can either be an ordered set of one or more approvers (persons and/or user accounts) or it can be a list, which is dynamically generated at rule evaluation time. The low volumes and high variations in the volume of raw material make it more risky to invest in modern technology and difficult to compete with economies of scale. Raw materials, factory insurance expired, indirect labor. For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a: A. prime cost. They may bring in new customers to a business and are able to help build new business connections. To make your search easier, you can ask for references from former customers that have first-hand information regarding the quality as well as delivery of services by the firm. In case new shares are approved, thereby increasing the capital of the company, the current stockholders will have the preemptive right to purchase the newly approved shares of stock.