21. Generally accepted accounting principles c. derive their credibility and authority from general recognition and acceptance by the accounting profession. 22. A soundly developed conceptual framework of concepts and objectives should d. all of these. 23. Which of the following (a-c) are not true concerning a conceptual framework in account-ing? c. It should be based on fundamental truths that are derived from the laws of nature. S24. Which of the following is not a benefit associated with the FASB Conceptual Framework Project? d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. 25. In the conceptual framework for financial …show more content…
all of these. 47. In classifying the elements of financial statements, the primary distinction between revenues and gains is c. the nature of the activities that gave rise to the transactions involved. 48. A decrease in net assets arising from peripheral or incidental transactions is called a(n) c. loss. 49. One of the elements of financial statements is comprehensive income. As described in Statement of Financial Accounting Concepts No. 6, "Elements of Financial Statements," comprehensive income is equal to d. none of these. 50. Which of the following elements of financial statements is not a component of compre-hensive income? b. Distributions to owners P51. Which of the following is false with regard to the element "comprehensive income"? d. It excludes prior period adjustments (transactions that relate to previous periods, such as corrections of errors). S52. According to the FASB conceptual framework, earnings b. exclude certain gains and losses that are included in comprehensive income. S53. According to the FASB Conceptual Framework, the elementsassets, liabilities, and equitydescribe amounts of resources and claims to resources at/during a a. Yes No S54. Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy? a. Monetary unit assumption. S55. During the lifetime of an entity accountants
(Ohara, 2007) Most financial statements are made public for the benefit of stakeholders and potential investors. The bottom-line is that financial statements are the main source for analyzing how well a company is operating. The income (or profit and loss) statement is simply a report card of how much activity (revenue) was performed in the period, how profitable that activity was (gross profit/loss), and what it cost the contractor to run the business (overhead). (Murphy, 2006)
Other comprehensive income definition: Revenues, expenses, gains, and losses that under generally accepted accounting principles (GAAP) are included in comprehensive income but excluded from net income.
C. developed for each item in the financial statements and derived from the categories of management’s financial statement assertions.
The standard statements focus on accounting income for the entire corporation, not cash flows, and the two can be quite different during any given accounting period. However, for valuation purposes we need to discount cash flows, not accounting income. Moreover, since many firms have a number of separate divisions, and since division managers should be compensated on their divisions' performance, not that of the entire firm, information that focuses on the divisions is needed. These factors have led to the development of information that
Since the net income reported in the statement of cash flows is transferred from the profit and loss account which is the difference between revenue and expenditures all of two types;
A popular twentieth-century Swiss-American psychiatrist named Elisabeth Kübler-Ross believes that once an individual experiences a loss they exhibit five distinct stages of grieving. Kübler-Ross model can be broken down into five stage: they are denial, anger, bargaining, depression and acceptance. Kübler-Ross believes when a person experiences a death, they have these emotional responses assuring the process of healing. In an article on the Elizabeth Kübler-Ross foundation site, Professor Allan Kellehear explains, “These “stages” [may] overlap, occur together, or even that some reactions are missed altogether” (Kellehear). Hamlet “destructive behavior [that]
cognizant of the fact that the choices he makes can affect the price a buyer pays
Both these software are impressive at what they do. But both have similar strengths and weaknesses. But after being sophisticated in the accounts of business there can be few criticisms made in one of these products as for houzit. Quick books is not supported in Apple Macs, MYOB allows multiplication inventory where as quick books fades in this character. MYOB also allows multiple entities at a time but quick book does not.
In the stories "Live to Tell", "Interlopers", and "Way Up to Heaven" the shared literary element is suspense which gets developed through imagery. Each of these stories is unique in their own way. However they all have one thing in common, suspense. Through settings and characters the authors develop a great sense of tension and suspense which keeps the reader interested.
The income statement (IS) also known as the profit & loss statement provides the net gain or net loss of a business entity. The importance of the income statement is to evaluate profitability of a company (Finkler, Jones, and Koyner, 2013). The best use of the IS,
investors, auditors, executives of the business, etc.) an overview of the financial results and condition of the company. The major financial statements that come out of the accounting cycle are income statements, balance sheets, Statement of cash flows and Statement of retained earnings. Income statements are considered the most important of all the financial statements since it presents the operating results of an entity , e.g. revenues, expenses, and profits/losses generated during the reporting period (Bragg, 2017). Balance sheets provide reports of assets, liabilities, and equity of the entity as of the reporting date and can be considered the second most important statement because it provides information/figures about the liquidity, as well as the capitalization of a company (Bragg, 2017). Statement of cash flows exhibits the cash inflows and outflows that occur during a reporting period, which provides a useful comparison to the income statement, particularly when the amount of profit or loss reported does not reflect cash flows encountered by the businesses (Bragg, 2017). Statement of retained earnings is the least used financial statement that provides information regarding changes in equity during the reporting period and can include information such as: sale or repurchase of stock, dividend payments, and changes caused by reported profits or losses. Statements of retained earnings are often
The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).
The first of the financial statements is the income statement. The income statement states the revenues and expenses in an understandable way that shows a clear picture of net income or net loss for the
At the end of Animal Farm Napoleon officially renames the farm from Animal Farm back to the Manor Farm an action almost guaranteeing failure. Previously, Napoleon and his goons had been becoming more and more human like with the addition on walking on two legs, carrying whips, and living in the farm house. However all of that was very easy to trick the other animals into going along with because of how they slowly changed over time as the animals forgot what they hated about humans and still kept their trust in Napoleon. But changing the name of the farm back into what is directly associated with everything animal farm is against would not be tolerated by the other residents. Even though few of them can remember the days when Jones was around, those few will surely see this as Napoleon crossing the
This income statement tells how much money a company has brought in (its revenues) how much it has spent (its expenses) and the difference between the two (its profit). The income statement show’s a company’s revenues and expenses over a specific time frame. This statement