Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. discuss with examples, the nature of a reclassific

discuss with examples, the nature of a reclassificationadjustment and the arguments for and against...

80.2K

Verified Solution

Question

Accounting

discuss with examples, the nature of a reclassificationadjustment and the arguments for and against allowingreclassification of items to profit or loss

Answer & Explanation Solved by verified expert
4.2 Ratings (680 Votes)
In accounting the word reclassification is often used to describe moving an amount from one general ledger account to another For example if an expense was charged to marketing supplies instead of administrative supplies the correcting entry might read To reclassify from marketing supplies to administrative supplies Reclassification can also refer to other situations For example when a companys longterm note payable becomes due in less than one year the note will be reclassified to the current liabilities section of the balance sheet If a company stops using one of its buildings and puts the building up for sale the building will be reclassified from Property Plant and Equipment to the Investments section of the balance sheet Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods Accounting Capital Home Journal Entries What is a Reclass Entry What is a Reclass Entry Reclass Entry Accounting for a business also means being responsible for adjustments and corrections One such adjustment entry is reclass or reclassification journal entry The process of transferring an amount from one ledger account to another is termed as reclass entry It is most often seen as a transfer journal entry is a critical part of the final accounts of a business Uses of this entry For correction of a mistake For reclassification of a longterm asset as a current asset For reclassification of a longterm liability as a current liability To change the type purpose of an asset in the financial statements Example Reclass Entry Though there are quite a few reasons to perform a reclass entry however we will illustrate one of the most common scenarios ie correction of a mistake The finance department booked payment of Rent expenses for current month using the below journal entry Error journal entry rent debit by mistake The above entry was    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: Accountingdiscuss with examples, the nature of a reclassificationadjustment and the arguments for and against allowing...discuss with examples, the nature of a reclassificationadjustment and the arguments for and against allowingreclassification of items to profit or loss

Other questions asked by students

Q

A sample of blood pressure measurements is taken from a data set and those values? (mm...

Basic Math
Q

Two summers ago in NYC there was an outbreak of Legionnaires' Disease. Since summer is upon...

Psychology
Q

Patterson Ltd was registered on 18 March 2017, as a company with a constitution limiting the...

Accounting
Q

A transformation in which the preimage and image are congruent is called a an O...

Geometry
Q

A Field Poll Survey reported that 59% of registered voters in a state approved of...

Basic Math
Q

A simple random sample of size n 1 080 is obtained from a population whose...

Calculus
Q

21 Find the center and radius for the circle a x 2 y 3 16...

Calculus
Q

11 g x 2x 4 4 MAI 2 4 2 AN 4 y 2 4x...

Algebra
Q

As volume increases, which of the following statements is not correct? Select one: a. Variable...

Accounting
Q

LUAnna is self-employed in Oklahoma as a court reporter and recently attended a three-day busines...

Accounting
Q

Question: The following list of accounts is from the adjusted trial balance for Monty Corporation:...

Accounting
Q

I need help ASAP! please Question 3. Simple Bootstrapping You have fives...

Finance