test your power 1

• Asset + Liability = Equity

• Asset + Equity = Liability

• Liability - Asset = Equity

• Liability + Equity = Asset

which of the followings is NOT an asset?

• prepaid rent

• land improvements

• treasury shares

• interest receivable

example of OTHER COMPREHENSIVE INCOME

• gain on sales of assets

• interest income

• gain property revaluation

• unearned revenue

Allowance method for bad debt

• the identified uncollectible amount will be recognized as bad debt expense

• fails to match expenses with revenue

• involves the use of percentage to estimate the uncollectible amount

• appropriate when the amount is immaterial

MFRS107 states that the statement should be presented based on operating, investing and financing activities

MFRS138 para18 defines this as an identifiable non-monetary assets without physical substance

the followings are example of payables EXCEPT

• accrued interest

• pension liability

• retained earnings

• bond payables