Break-up Basis – Noohra Business Consult

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

Question

i. Differences between Accounting Bases

Cash Basis: Recognizes revenue and expenses only when cash is received or paid. It does not match income with expenses incurred in the same period.
Accrual Basis: Recognizes revenue when earned and expenses when incurred, regardless of when cash transactions occur. It provides a more accurate picture of a company’s financial position.
Break-up Basis: Assumes that a business will not continue as a going concern, and assets are valued at their realizable amounts rather than their carrying amounts.

ii. Setback of Cash Basis

It does not provide a true picture of financial performance, as income and expenses may not be recorded in the period to which they relate.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

Question

i. Differences between Accounting Bases

Cash Basis: Recognizes revenue and expenses only when cash is received or paid. It does not match income with expenses incurred in the same period.
Accrual Basis: Recognizes revenue when earned and expenses when incurred, regardless of when cash transactions occur. It provides a more accurate picture of a company’s financial position.
Break-up Basis: Assumes that a business will not continue as a going concern, and assets are valued at their realizable amounts rather than their carrying amounts.

ii. Setback of Cash Basis

It does not provide a true picture of financial performance, as income and expenses may not be recorded in the period to which they relate.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

Question

Explain the differences between the accrual, cash, and break-up basis of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Accrual Basis, Break-up Basis, Cash Basis, Financial Reporting
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2018

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

Question

Explain the differences between the accrual, cash, and break-up basis of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Accrual Basis, Break-up Basis, Cash Basis, Financial Reporting
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2018

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

Question

Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
Explain the following accounting bases:
i. Cash basis
ii. Accrual basis
iii. Break-up basis
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

Question

Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
Explain the following accounting bases:
i. Cash basis
ii. Accrual basis
iii. Break-up basis
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

Question

a) Accounting principles and concepts are of fundamental importance in the preparation of financial statements.
Required:
With the aid of relevant examples, outline your understanding on any FOUR (4) of the following concepts/principles: i) Accruals
ii) Going Concern
iii) Historical Cost
iv) Materiality
v) Break up basis
(10 marks)

b) Patricia Ltd prepares accounts to 31 December each year. The following transactions relate to Rent and Rates: i) 31 December 2018 three months’ rent owing amounted to GH¢6,000.
ii) 31 December 2018 two months rates prepaid amounted to GH¢5,250.
iii) During the year 2019, cash paid for rent and rates amounted to GH¢90,000
iv) Rent owing as at 31 December 2019 amounts to GH¢9,000
v) Rates prepaid as at 31 December 2019 amounts to GH¢2,250
Required:
Prepare a combined rent and rates account to disclose the amount that is chargeable to the profit or loss account for the year ended 31 December, 2019.
(4 marks)

c) The following information was extracted from the books of Maanaa and Co.:

Year	Bad debts written off (GH¢)	Trade Receivables (GH¢)	Allowance for doubtful debt (%)
1	200,000	1,200,000	10
2	300,000	1,800,000	5
3	100,000	3,000,000	5

Required:
Prepare the following accounts for the 3 years to determine the amount chargeable to the Profit or Loss account:
i) Bad debts written off account (2 marks)
ii) Allowance for doubtful debt account (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Allowance for Doubtful Debt, Bad Debts, Break-up Basis, Going Concern, Historical Cost, Materiality, Rates, Rent
Level: Level 1

Topic: Accruals and prepayments, Bad and doubtful debt, The IASB’s Conceptual Framework
Series: NOV 2020

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

Question

c) The following information was extracted from the books of Maanaa and Co.:

Year	Bad debts written off (GH¢)	Trade Receivables (GH¢)	Allowance for doubtful debt (%)
1	200,000	1,200,000	10
2	300,000	1,800,000	5
3	100,000	3,000,000	5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Allowance for Doubtful Debt, Bad Debts, Break-up Basis, Going Concern, Historical Cost, Materiality, Rates, Rent
Level: Level 1

Topic: Accruals and prepayments, Bad and doubtful debt, The IASB’s Conceptual Framework
Series: NOV 2020

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

Question

i. Differences between Accounting Bases

Cash Basis: Recognizes revenue and expenses only when cash is received or paid. It does not match income with expenses incurred in the same period.
Accrual Basis: Recognizes revenue when earned and expenses when incurred, regardless of when cash transactions occur. It provides a more accurate picture of a company’s financial position.
Break-up Basis: Assumes that a business will not continue as a going concern, and assets are valued at their realizable amounts rather than their carrying amounts.

ii. Setback of Cash Basis

It does not provide a true picture of financial performance, as income and expenses may not be recorded in the period to which they relate.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

Question

i. Differences between Accounting Bases

Cash Basis: Recognizes revenue and expenses only when cash is received or paid. It does not match income with expenses incurred in the same period.
Accrual Basis: Recognizes revenue when earned and expenses when incurred, regardless of when cash transactions occur. It provides a more accurate picture of a company’s financial position.
Break-up Basis: Assumes that a business will not continue as a going concern, and assets are valued at their realizable amounts rather than their carrying amounts.

ii. Setback of Cash Basis

It does not provide a true picture of financial performance, as income and expenses may not be recorded in the period to which they relate.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

Question

Explain the differences between the accrual, cash, and break-up basis of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Accrual Basis, Break-up Basis, Cash Basis, Financial Reporting
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2018

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

Question

Explain the differences between the accrual, cash, and break-up basis of accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Accrual Basis, Break-up Basis, Cash Basis, Financial Reporting
Level: Level 2

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: MAY 2018

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

Question

Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
Explain the following accounting bases:
i. Cash basis
ii. Accrual basis
iii. Break-up basis
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

Question

Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
Explain the following accounting bases:
i. Cash basis
ii. Accrual basis
iii. Break-up basis
(6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Basis, Break-up Basis, Cash Basis
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

Question

c) The following information was extracted from the books of Maanaa and Co.:

Year	Bad debts written off (GH¢)	Trade Receivables (GH¢)	Allowance for doubtful debt (%)
1	200,000	1,200,000	10
2	300,000	1,800,000	5
3	100,000	3,000,000	5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Allowance for Doubtful Debt, Bad Debts, Break-up Basis, Going Concern, Historical Cost, Materiality, Rates, Rent
Level: Level 1

Topic: Accruals and prepayments, Bad and doubtful debt, The IASB’s Conceptual Framework
Series: NOV 2020

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

Question

c) The following information was extracted from the books of Maanaa and Co.:

Year	Bad debts written off (GH¢)	Trade Receivables (GH¢)	Allowance for doubtful debt (%)
1	200,000	1,200,000	10
2	300,000	1,800,000	5
3	100,000	3,000,000	5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Allowance for Doubtful Debt, Bad Debts, Break-up Basis, Going Concern, Historical Cost, Materiality, Rates, Rent
Level: Level 1

Topic: Accruals and prepayments, Bad and doubtful debt, The IASB’s Conceptual Framework
Series: NOV 2020

Question Tag: Break-up Basis

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FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

i. Differences between Accounting Bases

ii. Setback of Cash Basis

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

i. Differences between Accounting Bases

ii. Setback of Cash Basis

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash"

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

You're reporting an error for "FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

You're reporting an error for "FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts"

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts"

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

You're reporting an error for "FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework"

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

You're reporting an error for "FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework"

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

i. Differences between Accounting Bases

ii. Setback of Cash Basis

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash

Differentiate accounting bases and discuss a setback of the cash basis.

i. Differences between Accounting Bases

ii. Setback of Cash Basis

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6a – Bases of Accounting: Accrual vs. Cash"

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

You're reporting an error for "FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)

Explain the differences between the accrual, cash, and break-up basis of accounting, with examples

You're reporting an error for "FR – May 2018 – L2 – Q5b -Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)"

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts"

FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts

Explain the cash, accrual, and break-up accounting bases.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4a – Accounting Concepts"

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

You're reporting an error for "FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework"

FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework

Question on various accounting principles and preparation of specific accounts related to rent, rates, bad debts, and doubtful debts.

You're reporting an error for "FA – Nov 2020 – L1 – Q1 – Accruals and prepayments | Bad and doubtful debt | The IASB’s Conceptual Framework"

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