It’s not easy sometimes to distinguish between a change in principle and a change in estimate. In these cases, how should the change be accounted for?

Q: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: A critical assumption of the exploratory factor analysis (EFA) is that it is only appropriate for…

A: Definition: Exploratory Factor Analysis (EFA): It is a statistical approach to determine the…

Q: uncertainty?

A: Answer - Option D Relevance is where the information is useful and appropriate , predictive or…

Q: e main hindrances in valuation estimates in busiiness valuation?

A: Introduction Knowing how much an asset is worth and what factors influence its value is critical for…

Q: It is good to assume that unusual items will be zero. True or False

A: Unusual or Infrequent Items are transactions that are unusual in nature or infrequent. The items…

Q: An analysis of what happens to the estimate of net present value when only one input variable is…

A: Net Present Value: It is the present worth of future cash flows and the initial cost of the project.…

Q: Since estimates are not actual amounts and are used to approximate, there is not a need for the…

A: Accounting estimates means an estimate which is made on the basis of information given at the point…

Q: What procedures should be performed to determine the adequacy of the allowance for doubtfulaccounts?

A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account…

Q: So why would we not use standard deduction?

A: Standard deduction is the term which is used in the accounting and it is the portion of income that…

Q: have a follow-up question. For parts a, b, and c are each of the calculations favorable or…

A: Variance which generates high revenue or low expenses are favourable variance. And variance which…

Q: A present liability of an uncertain amount that can be measured reliably using substantial degree of…

A: Liability: It can be defined as the amount owed by the business from the creditors.

Q: can you provide detailed explanation? I don't get why they all are false

A: In the context of the given question, we are required to provide an explanation of the authenticity…

Q: Which of the following is NOT a factor in the calculation of a FICO score?

A: FICO score FICO score is a credit score created by the Fair Isaac Corporation.

Q: The definition of provision in uses the term ‘probable’. How would you interpret ‘probable’? What…

A: Provisions are shown on the liability side of the balance sheet.

Q: Which of the following is incorrect regarding measurement period?

A: Business combinations are the result of acquisitions or mergers. Here, one party acquires the other…

Q: How does accounting for permanent differences less complex than is accounting for temporary…

A: Temporary Difference:   A temporary difference is the difference of an income recognized under the…

Q: s

A: Interim reporting : An interim statement is a financial report that covers a period of less than a…

Q: “What has been regarded as normal spoilage in the past is not necessarily acceptable as normal…

A: Spoilage:   Spoilage is the defective item in an intermediate or final stage. The spoilage goods…

Q: It could be said that strategy invalidates the net present value rule Explain the reasoning behind…

A: The net present value rule is an investment concept stating that projects should only be engaged in…

Q: When completing a differential analysis, when are the differences shown as positive amounts? As…

A: In differential analysis , two alternatives are compared by taking first alternative as base and…

Q: Of what merit is the contention that the allowance methodlacks the objectivity of the direct…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: “Total input includes abnormal as well as normal spoilage and is, therefore, inappropriate as a…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: If the trial balance is balanced, are we certain that there are no errors in it? How so?

A: Trial balance is the statement which is prepared by an entity to check if the debits in the books…

Q: What is the monetary threshold value, when a Statement of Advice (SOA) may be replaced by a Record…

A: Statement of advice is the way by which one can communicate his advice in relation to investment to…

Q: This is is used to check the effect on the recommendations of a model if the estimates turn out to…

A: solution: concept In a what if analysis we try to answer the question of what if What if the value…

Q: According to our authors, what is a misstatement? Provide examples.

A: Misstatement: A remark that is not accurate or the provision of erroneous information is referred to…

Q: Which is an error of omission

A: Accounting error is error in entering, computing, and analysis of data. This includes the recording…

Q: What would the effect of the failure in the ratio measurement?

A: Ratio measurement in terms of financial world depicts that a single accounting figure by itself may…

Q: Explain how and why changes in estimates are reported prospectively.

A: Accounting exchanges are those exchanges that legitimately influence the financial statements of a…

Q: What is the VIX index? What is it used for? What are considered high values for the VIX and what do…

A: Volatility: - Volatility is a measure of movement or price variation in assets on daily, weekly,…

Q: What type of basis is it called when we report only the amounts actually collected and/or spent?

A: There are two methods of accounting. One is cash basis and other is accrual basis.

Q: What is an evidence which can support a conclusion for the time being but it may be proven…

A: Circumstantial proof is evidence that depends on associate illation to attach it to a conclusion of…

Q: Which of the following is not considered to be an analytical procedure?

A: Answer: Comparisons of financial statements accounts with source documents

Q: What is an uncorrected misstatement?

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Explain about the PROSPECTIVE APPROACH: WHEN RETROSPECTIVE APPLICATION IS IMPRACTICABLE.

A: Accounting policies are required to be followed consistently so that, comparability of the financial…

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used…

Q: What is a MIS report, why is it  prepared?

A: MIS is Management Information System. Management information system is an integrated collection of…

Q: Only sets of non-nominal items that presumably belong to reflective latent factors are acceptable…

A: Definition: Analysis of Factors (EFA): An experiment's variables are analyzed using statistical…

Q: t is objective?...

A: Objective vs subjective trading: Most traders follow either an essentially objective or subjective…

Q: Which of the following is NOT an advantage of using sensitivity analysis?

A: Which of the following is NOT an advantage of using sensitivity analysis? A  It identifies the…