Explain the following and describe its impact on the financial statements: a. cost principle b. conservatism c. time period assumption

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A:

Q: Ratios are an input into which step in the financial statement analysis framework? a. Collect input…

A: Collection input data: For, analysis it is important to break down the complex data in the financial…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Financial statements are considered as the report which is prepared by a business in order to…

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: mptions that need to be considered while preparing  a financial statement.

A: Financial statements are formal records of a company's, individual's, or other entity's financial…

Q: Describe the approach to financial statement analysis

A: Financial statement analysis: Financial statement analysis is a valuable measure for evaluating…

Q: Explain and evaluate the eff ects on financial statements and ratios of capitalizing versusexpensing…

A: Capitalizing Costs: When any cost is incurred with respect to any asset which will provide long-term…

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: Which of the following facilitates the comparison of financial performance with one period to…

A: Financial performance can be compared if the business uses same policies and methods in all the…

Q: Materiality is an entity-specific aspect of which of the qualitative characteristics of financial…

A: Materiality is an aspect of relevance in entity specific... The concept of materiality is relevance…

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

A:

Q: Explain the importance of perspective analysis to financial statement analysis?

A: The process of evaluating a company's performance or value using its balance sheet, income…

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: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts receivable.

Q: Forward-looking information Includes the following except Select one: O a. Measurement and…

A: Forward looking information is that information that helps in planning for the future.

Q: Explain and evaluate the effects of capitalizing versus expensing costs in the period in which they…

A: Capitalization : When a company incurs any expense, benefit of which will be available for more than…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Gross margin ratio = ( Total revenue - Cost of Goods sold ) / Total revenue.

Q: Why is the going-concern assumption an important consid-eration in understanding financial…

A:

Q: A company’s current fi nancial position would best be evaluated using the:B . income statement.

A: Financial position of the company is very much important especially for investors to make their…

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

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…

Q: The trend in financial management is to treat expenditure on human resource as ____ a. as expense b.…

A: The answer and explanation can be seen below:

Q: Define the expenses of products and periods and explain how they affect financial accounts.

A: This question explains about products and periods and financial accounts.

Q: Distinguish between horizontal and vertical analysis of financial statement data.

A: Following is the difference between horizontal and vertical analysis of financial statement data:…

Q: Describe the rules of accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Times interest earned ratio is used to measure ability of the company to pay it's debt payment.…

Q: The conceptual framework for financial reporting (CF) allows for two measurement bases. What are…

A: This question explains about the conceptual framework for financial reporting (CF) allows for two…

Q: How are operating items projected on financial statements?

A: Solution:- Operating expenses are indirect expenses which includes selling, distribution, admin…

Q: Why is continuity assumption,separate entity assumption and cost principle so important for…

A: Continuity means the assumption and principles will be continued to be followed every year so that…

Q: laborate the uses of financial statement analysis.

A: Financial statements: The written records that describe the activities of the business and the…

Q: How do REA and ER diagrams support financial statements?

A: REA diagram: REA diagram is a method utilized to implement the association among events, agents and…

Q: Distinguish between ratio analysis and percentage analysis relative to the interpretation of…

A: Financial statement: A record of financial activities and financial position of the company or an…

Q: Financial accounting is concerned -3 * with a- analysis and classification of cost elements b- the…

A: As per our honor code, I can answer only first question. If you want the answer for unanswered…

Q: What is the cost constraint, and how does it affect financial reporting?

A: Under financial accounting, constraints are referred to as boundaries or guidelines prescribed in…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Debt to Equity ratio is calculated by the following formula: Debt to Equity = Debt/Equity

Q: mention the users of financial information and their respective needs.ment accounting and cost…

A: The users of financial information and their respective needs are discussed hereunder :

Q: Which of the following sets includes only accounting assumptions and conventions? a. timeliness,…

A: b. matching, comparability, a period of time, and reliability c. the monetary unit, going concern,…

Q: With the given statement of financial position, conduct a horizontal analysis.

A: Horizontal analysis is very important analysis of financial statements, which shows how much assets…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Liquidity:   Liquidity is what and how quickly company can turn assets into cash.   Efficiency:…

Q: Discuss the use of horizontal and vertical analysis of financial statements.

A: Horizontal and Vertical analysis are two types of analysis which are used for reviewing financial…