How the system of cost accounting has overcome the limitations of financial accounting. Explain it by pointing out the different limitations of financial Accounting

Q: Traditional accounting systems record only actual transac-tions. As a result, how can opportunity…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Describe the reasons why financial accounting is useful?

A: Financial accounting is a specific branch of accounting involving a process of recording,…

Q: Explain the political cost hypothesis of Positive Accounting Theory.

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: How do you find gross profit in financial accounting?

A: Gross profit is the income earned by the company after deducting the cost of goods sold from the…

Q: Why is the Modified Accelerated Cost Recovery System not generally accepted for financial accounting…

A:

Q: “Management accounting deals only with costs.” Do you agree? Explain?

A: Management accounting is wide field which encompasses cost computation, pricing analysis,process…

Q: Explain the economic environment of financial accounting.

A: The economic environment of financial accounting.

Q: Give a breakdown of the sources of income and categories of costs for a financial organization.

A: Banking institutions are one of the key financial institution of the economy. They primarily receive…

Q: Explain the objective of Financial Reporting

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

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

Q: Cost is a pervasive constraint on the information that can be provided by financial reporting.…

A: The main purpose of financial reporting is to provide the information in faithful and useful manner…

Q: What do you mean by materiality concept in accounting?

A: Materiality concept:Materiality concept refers to a condition wherein, the financial information of…

Q: The origin of management accounting is due to limitations of Financial accounting and cost…

A: Management accounting means an field of accounting where accounting information is used in such a…

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: How do cost management and financial accounting differ?

A: The accounting is a process to identify, classify and record the transactions of the business and…

Q: Cost is a pervasive constraint on the information that can be provided by financial reporting.…

A: Financial statements (or financial reports) are official records of a company's, person's, or other…

Q: How cost accounting is useful where financial accounting could not be answered. Give any exampleto…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

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

A:

Q: What is meant by “economic Consequences” in accounting standard-setting

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

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: What are opportunity costs? Explain why opportunity costs are not recorded in financial accounting…

A: Opportunity cost is the value or benefit of the next best alternative given up when making a choice.…

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: Define accounting profit

A: The profit earned by an entity after considering all the cost and expenses accruing to the entity…

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: 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: Are the financial reports contained in the annual report considered financial accounting reports or…

A: Financial reports are information regarding the financial performance and financial position of a…

Q: i). How cost accounting is useful where financial accounting could not be answered. Give any example…

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

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: Is the matching of costs and revenue a basic accounting principle?

A: Accounting Principle: The set rules which defines the way account should be prepared is known…

Q: What qualitative characteristic defines, the underlying influence in the preparation of financial…

A: Going concern represents that the company would prepare its financial statement with the intention…

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: Under what type of responsibility would cost accounting go under? managerial accounting, tax…

A: Cost accounting is a branch of accounting which is used to determine the costs of different…

Q: Which of the following costs would not be included in accounting financial statements? O A.…

A: Financial statement includes all those costs that are incurred in the business such as sunk cost,…

Q: Question 2: It is usually seems as cost accounting cover the financial accounting problems as:…

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

Q: Cost Accounting verity more from Financial Accounting? True Flase

A: Cost accounting can be defined as an important branch of managerial accounting under which the…

Q: Explain differential effects on accounting standards.

A: Accounting standards deals with the issues of: Recognition of events and transaction in financial…

Q: What are the accounting implications of an accounting model whose measurement focus is on “current…

A: The current financial resources measurement focus measures primarily financial resources and does…

Q: In conducting a B/C analysis, (a) why is it usually necessary to take a specific viewpoint in…

A: View point differs from person to person depending upon their costs and benefits from a project. It…