Answered: Discuss the relationship between profit…

Business

Accounting

Discuss the relationship between profit and ethics.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 1MC: Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process...

See similar textbooks

Related questions

Q: ) POINT OUT THE MAJOR DIFFERENCES OF BALANCE SHEET (B/S), INCOME STATEMENT (I/S) AND CASH FLOW…

A: Financial statements are the reports that shows entity's financial position and information such as…

Q: Which of the following types of information is not found in financial statements? * O Profits O…

A: Financial statements refers to a set of documents prepared by a company for every year of…

Q: In other words, "the retained profits account serves as a bridge" to help connect the income…

A: Here Is The Answer :

Q: One of advantage of accounting rate of return, "lt is based on accounting profits which are subject…

A: Lets understand the meaning of accounting profit. Accounting profit is a profit which indicates the…

Q: Statement 1: If financial information is to be useful, it must be relevant or faithfully represent…

A: Financial information is useful when it is relevant and represents faithfully what it purports to…

Q: Revenue is recorded when services have been performed or products have been delivered to customers.…

A: Introduction: Accounting Principals are created in order to increase the precision of financial data…

Q: Using the worksheet to prepare financial statements Answer the following questions: Requirements 1.…

A: Worksheet to prepare financial statements- Sometimes the managers use worksheet approach to prepare…

Q: Write short notes on the following accounting principles with proper example. A) cost principle?…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: C.requires equilibrium of resources and the claims on those resources

A: Answer: The accounting is equation is called the balance sheet equation. According to the accounting…

Q: Explain the income & expenditure and Receipts & payment? Draw the format with example? What is the…

A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting…

Q: Which of the following types of information is not found in financial statements? * O Profits…

A: Financial Statements shows the financial performance and financial position of the company which…

Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…

A: Accounting Principles: Accounting principles refers to the rules and guidelines that are to be…

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Income statement is a part of financial statements which is prepared at the end of accounting…

Q: What's the connection between the income statement and the balance sheet

A: This question deals with the connection between the income statement and the balance sheet

Q: What does it mean that FIFO has a balance-sheet focus and LIFO has an income-statement focus?

Q: Explain the difference between profit and profitability. Explain the concept of going concern…

A: Following are the difference between profit and profitability: Profit is an absolute figure that…

Q: The principle of revenue recognition results in: a. recording revenue in the income statement b.…

A: In Accounting, there are certain principles and conventions which are followed to get fair view of…

Q: Net income and earnings are the same thing and are the bottom line of the income statement. True or…

A: Income statement is the summary of revenue and expenses of the company for a particular period. The…

Q: Accrual accounting is the main takeaway here due to the what principle

A: Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction…

Q: QUESTION5 The four accounting principles are: going concern, revenue recognition, materiality, and…

A: The accounting principles are the basic concepts on which accounting is based.

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Net income is generated after analyzing revenues and expenses of the organization.

Q: 2) expense, (3) loss as used for financial reporting in conformity with GAAP. In your explanation,…

A: 1. Cost: Cost is the amount that is given in consideration of goods that are either received or are…

Q: Which of the following statements about income and expense recognition is true? I. The gross profit…

A: Recording of Income statement and Balance Sheet can be done through different methods : Cash basis:…

Q: Accounting equation is developed based on a. Revenue realization b. Dual aspect c. Money measurement…

A: The accounting equation states that assets equals to total of liabilities and shareholders' equity.

Q: Explain clearly how would you read a Balance Sheet and the statement of Profit and Loss.

A: Balance sheet and statement of profit and loss are the financial statements of a company. The…

Q: me statement represents the basic accounting equation. True or false?

A: Solution: Basic accounting equation is that Assets are equal to the sum of Liabilities + equity.…

Q: What are the differences between EVA and net profit in accounting

A: Introduction : Businesses may assess investment prospects using economic value-added and accounting…

Q: Under the historical cost accounting model the financial statement that is regarded as the most…

A: A financial statement is prepared by the management for users' decision making, it includes the…

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: (a) The income statement can also be called a “profit-and-loss statement" because it is a financial…

Q: Which of the following is not a criterion to recognize revenue under GAAP?A. The earnings process…

A: GAAP is the generally accepted accounting principles that are used by the accountants for the…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: How a profit is determined a) under the cash basis of accounting and b) the accrual basis of…

A: a) Under cash basis of accounting revenues and expenses only includes where there is a cash exchange…

Q: Presented below are the assumptions, principles, and constraint used in this chapter. 1. Economic…

A: Going concern assumption: The going concern assumption emphasizes on the longevity of the company's…

Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or…

A: Accounting assumptions : As the name suggests, these are the assumptions to be considered by…

Q: Question 2 Which of the following is not a purpose of the income statement? O used to evaluate…

Q: Under AASB101 Presentation of Financial Statements, which of the following items, if it exists, must…

A: Solution: Revenue, Share of profit of associates and cost of sales are temporary accounts that are…

Q: The statement of changes in financial position was designed to enable financial statement users to…

A: Answer: The statement of financial position is statement which shows the profit and losses during an…

Q: th the use of three different examples, explain why cash and profit are not the same thing. Your…

A: Profit is the difference between revenue earned less expenses incurred. It is net income earned by…

Question

100%

1-)Discuss the relationship between profit and ethics.

2-)Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the word balance mean in the title of the balance sheet ? Why do we balance the two halves ?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is considered a constraint on useful information by Statement of Financial Accounting Concepts No. 8? a. benefits costs b. conservatism c. timeliness d. verifiability
a) Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? b) Discuss the relationship between profit and ethics.
In other words, "the retained profits account serves as a bridge" to help connect the income statement and the balance sheet. What does this mean?
Which of the following is not a criterion to recognize revenue under GAAP?A. The earnings process must be completed.B. A product or service must be provided.C. Cash must be collected.D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process
Write short notes on the following accounting principles with proper example. A) cost principle? Proper Example B) Economic entity assumption? Explain example C)Monetary unit Assumption?explain example D) going concern?example E) periodicity?example F)Revenue recognition principle? Example G)Matching concept? Example H)Accrual basis of accounting? Example I) Dual aspect of accounting? Explain example
Explain the difference between profit and profitability. Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.
The income statement represents the basic accounting equation. True or false?
Accounting equation is developed based on which of the following ? a. Historical cost b. Money measurement c. Dual aspect d. Revenue realization
Which measure is limited by the fact that it uses accounting income? a. ROI b. RI c. EVA d. All of the above
Explain why the income statement can also be called a “profit-and-loss statement.”
What does it mean that FIFO has a balance-sheet focus and LIFO has an income-statement focus?
We can say that the business is in profit, when: Select one: a. Income exceeds Liabilities b. Assets exceed Expenses c. Income exceeds Liabilities d. Income exceeds Expenses