Question

n app 6 ansache T-

Answer 1

17.

A. DEPRECIATION is an application of the matching concept.

Depreciation expense follows matching concept. It is the use of asset applied as an expense throughout the useful life of asset so that earnings are not overstated.

18.

D. Net income that has been reinvested in the company.

Retained earnings is the amount of earnings that have been kept or retained by the company after giving dividends from earnings. These are reinvested by the company to fund their new or current operations.

19.

B. Accrual of interest expense.

Interest accrued is the amount of interest to be paid on the borrowings but has not been paid. It becomes a current liability for the company.

20.

C. An authorized share

An authorized share has virtually no economic significance as it is the share allowed to be issued in the market.

Par value is the value of share with any premium or discount on value of share.

Corporate value is the value of common stock.

Non controlling amount is the share in subsidiary equity where the parent company has less share in common stock which is less than 50%.