Explanation

The liabilities that are payable in more than a year and are not to be liquidated from current assets are fixed liabilities.

These are long-term obligations like bonds or long-term loans that extend beyond the current operating eecycle.

Explanation

Real accounts record dealings in commodities.

They relate to assets, such as cash, property, and equipment, which are tangible and reflect the value of resources owned by the business.

Explanation

The trader is following the accrual basis of accounting.

This concept recognizes revenue when it is earned, not necessarily when cash is received.

Hence showing the full sales amount and trade receivables in the financial statements.

Explanation

The goodwill brought in by an incoming partner in cash is shared by the old partners in their sacrificing ratio.

This ratio reflects the proportion in which the old partners give up part of their profit share to accommodate the new partner.

Explanation

The intangible asset recorded only as part of the acquisition of another company is goodwill.

Goodwill represents the premium paid over the fair value of the identifiable net assets of the acquired company and reflects factors like brand reputation and customer relationships.

Explanation

Journal Voucher is used to record transactions that do not involve cash or bank accounts.

Such as adjustments or corrections to accounts.

Explanation

If partners do not have any agreement, profits or losses should be shared equally.

In the absence of a partnership agreement, the default legal rule is to divide profits and losses equally among the partners.

Explanation

The basic assumptions of the law of demand include the commodity should not confer any distinction.

This means the law assumes that the commodity being analyzed is homogeneous and that the demand for it is influenced solely by changes in its own price, without considering differences in preferences or the presence of unique attributes.

Explanation

To calculate the gross profit, use the formula:

Gross Profit = Net Sales - Cost of Goods Sold

First, calculate net sales:

Net Sales = Sales - Sales Returns

Net Sales = $300,000 - $45,000 = $255,000

Then, calculate gross profit:

Gross Profit = Net Sales - Cost of Goods Sold

Gross Profit = $255,000 - $152,000 = $103,000

So, Austin Sound reported a gross profit of $103,000.

Explanation

The measure of how efficiently the asset resources are employed by the firm is called activity ratios.

These ratios, such as inventory turnover and asset turnover, assess how effectively a company uses its assets to generate sales and profits.