Select the statement that is correct.Capital loss on a financial instrument at the time of the saleA.can offset the tax as tax has already been paid by the company on its profitsB.can offset a capital loss made on another financial instrument when calculating the taxable income.C.can offset a salary when calculating the taxable income.D.can offset a capital gain made on another financial instrument when calculating the taxable income.

A capital gain arises when:a.Proceeds from the sale of an asset are less than the base cost an asset.b.Proceeds from sale of an asset are equal to the base cost of an asset.c.A personal use asset is disposed.d.Proceeds from a sale of an asset are greater than the base cost of an asset.

Earnings or gains in a business arising from its activities.Select one:a.Expensesb.Capitalc.Revenued.Statement of Financial Position

Adjusting entry for accrued revenue is required when*a. cash is received for services renderedb. cash is received after the revenue is earnedc. cash is received before the revenue is earnedd. none of these

Which of the following statements is correct? Group of answer choices Adjusting entries are not necessary if the trial balance debit and credit columns balances are equal. Profit will always be greater under the cash basis of accounting than under the accrual basis of accounting. Accrued revenues are revenues that have been received but not yet earned. Asset prepayments become expenses when they expire.

A loss on disposal of a plant asset is reported in the financial statementsGroup of answer choicesin the Other Revenues and Gains section of the income statement.in the Other Expenses and Losses section of the income statement.as a direct increase to the capital account on the balance sheet.as a direct decrease to the capital account on the balance sheet.