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.

Q: Evaluate the strengths and weaknesses of interpretive accounting theory

A: Interpretive Accounting theory:-Interpretive Accounting theory has evolved and made significant…

Q: When selecting a presentation format for the statement of profit or loss and other comprehensive…

A: Statement of profit and loss is very important financial statement which shows all incomes and…

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: Describe the accounting applications of present value techniques.

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Differentiate between book value and market value. Explain why GAAPallows smoothing earnings…

A: The net value of a company's assets, as represented on its balance sheet, is roughly equal to the…

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: advantages of taking amount (measurement bases)

A: Measurement bases are bases at which elements of financial statements are recognized.

Q: The elements that are directly related to the measurement of profit are assets, liabilities, and…

A: The profit is recognized by an entity at the instance where the assets are increasing, or the…

Q: Explain the objective of Financial Reporting

A: Financial reporting is an accounting practice where the organization discloses the financial results…

Q: A recognition test assists with deciding whether items should be included in the financial…

A: Financial statements seem to be a set of summary-level statements that summarise an organization's…

Q: (Usefulness, Objective of Financial Reporting, Qualitative Characteristics) Indicate whether the…

A:

Q: Explain the concept of going concern and the implication of revocation of going concern assumption…

A: Accounting concepts are the basic assumptions, rules and principles which work as the basis of…

Q: . Distinguish between the modified all-inclusive income statement and the current operating…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: adjusted directly against equit

A: Equity refers to the stake of shareholder's in the company. The formula for calculating equity of…

Q: What is Fair Value Accounting? What are the factors contributing toward the trend of fair value…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following is most closely linked to accounting conservatism? Lower-of-cost-or-market…

A: Answer:

Q: How would you describe the accounting profit?

A: The answer is about the accounting profit:

Q: In accounting terms, what is the difference between profit and loss

A: Accounting is based on the principle of double-entry. It may be described as how a company records…

Q: Fair value is a more relevant measure to use in Financial Reporting than Historical Cost. Discuss

A: Introduction: Fair value accounting refers to the practice of valuing your company's liabilities and…

Q: Which of the following requires accounting information to be complete, neutral, and free from…

A: Accounting principles:   These are the assumption, concepts, and guidelines necessary to prepare and…

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: Examine the advantages and disadvantages of interpretative accounting theory

A: Introduction : Interpretive Accounting theory has developed and contributed significantly to our…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: D) going concern?example  E) periodicity?example  F)Revenue recognition principle? Example…

A: The accounting principles seem to be the basic rules and procedures that businesses must adhere to…

Q: When preparing financial statement, accountants or auditors will determine an amount which is not…

A: It is practically not possible for an auditor to audit all the transactions in an accounting system.…

Q: Which of the following statements about accounting income and economic income is (are) correct? I.…

A: Accounting profits includes explicit costs only, whereas economic profits includes both explicit and…

Q: Which of the following requires accounting information to be complete, neutral, and free from…

A: Accounting Principles:

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Compare the essential features of each financial account statement to analyse the differences…

A: "As you have asked about the features, purpose and contents of financial account statements, I will…

Q: Explain in what situations it would be appropriate to recognize revenue over time

A: Recognition of Revenue over time: In situations where the service or sales of goods is divided over…

Q: Financial accounting = Economic truth + error + manipulation. Briefly explain

A: Financial accounting is a type of accounting that entails documenting, summarizing, and reporting…

Q: The relevance of providing information in financial statements is subject to the constraint of…

A: A financial statement refers to the set of statements prepared in a structured manner by following…

Q: In other words, what does the beginning balance of retained profits mean? Is it the same as the…

A: Retained profits are that portion of the net profits which are held by a company instead of…

Q: The going-concern assumption is an essential consideration in interpreting financial statements for…

A: The notion of a going concern is as follows: The going concern notion presupposes that the firm will…

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: provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: Financial accounting is concerned with how and why profits arise. Select one: True False

A:

Q: When making judgements lower profits and asset values are estimated rather than higher values. Which…

A: The underlying principles, assumptions, and circumstances that establish the parameters and…

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…