Explanation

The purpose of adjusting entries is to convert cash transactions into the accrual accounting method.

Explanation

Unearned income is income from investments and other sources unrelated to employment. Examples of unearned income include interest from savings accounts, bond interest, alimony, and dividends from stock.

Explanation

Expense is the cost incurred in or required for something.

Explanation

It is also called the Original cost method, Fixed Installment method or Equal Installment method.

Explanation

Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life

Explanation

Book value is the net value of a firm's assets found on its balance sheet, and it is roughly equal to the total amount all shareholders would get if they liquidated the company.

Explanation

Obsolescence is the state of being which occurs when an object, service, or practice is no longer maintained, required, or degraded even though it may still be in good working order.

Explanation

In financial planning, most high option price will lead to longer option period.

option period is a time frame or period of time, which is valid for an option to be exercised before or on the expiration date. 

Explanation

A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid—meaning that it will eventually come due. 

Explanation

The function of a depreciation provision is to make a company's balance sheet more accurately reflect the current value of the investments it has made in fixed assets over time.