liabilities not be reported on the balance sheet?

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: Financial Accounting - This is a branch of accounting under which business transactions are recorded…

Q: explain when and why the users of financial statements are not able to detect earnings management.

A: We should understand "Earnings management" first. Earnings management refers to the method of…

Q: Describe the primary reasons that a company’s book value in the balance sheet does not equal its…

A: Balance sheet: This is a financial statement that reports a company’s resources (assets) and claims…

Q: If a company incorrectly records a payment as an asset, rather than as an expense, how will this…

A: Payments are made against the goods or services received. Hence, it is recorded as an expense.

Q: The creditor is interested to know the liquidity of the company. which financial statement provides…

A: Explanation related to Liquidity ratio is given below,

Q: retained earnings are not part of the stockholders claims on the company net assets true  false

A: Retained earning means amount of profit remain after all the adjustment of expense and adjustments.

Q: Below are the limitation of financial statements .Please suggest ways to overcome them : -The…

A: Limitation of Financial Statement There  are number of limitation which are involved with the…

Q: Which of the following is not an external user of a business’s financial information? Taxing…

A: The financial information of the company is used by many internal & external users for getting…

Q: What are bad debts?

A: Hi Student Since there are multiple questions, we will answer only first question. If you want…

Q: What are the impacts on your financial statement if you account the transactions not accurately

A: Financial Reporting refers to the recording of the financial transactions of a company for a desired…

Q: Why is the liabilities section of the balance sheet of primary significance to bankers?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What is an externality, and why do financial accounting practices typically ignore externalities?

A: Externality is the benefit or the cost caused through the producer that is not incurred financially…

Q: Which of the following is not a financial statement? O Bank statement Income statement Balance sheet…

A: The income statement shows all the revenue, expenses, and net profit/loss. The income statement is…

Q: What is information asemmytry? Why is it considered a problem to the financial system?

A: Information asymmetry is simply the imbalance of information between the trade participants i.e. one…

Q: Why do you think Accounting Standards are mandatory?

A: Definition:   International Financial Reporting Standards (IFRS): IFRS are a set of international…

Q: If a company failed to record an accrued income, what would be the effects?

A: Accrued income is that income which is being earned by the business for the particular period of…

Q: Why might conflicts arise between stockholders and debtholders?

A: A stockholder or a shareholder can be an individual or a company who own one or more shares of a…

Q: Although

A: BALANCE SHEET AMOUNTS ARE CARRIED AT NORMALLY AT BOOK VALUE

Q: Could management use long-term liabilities to manage earnings? Explain.

A: Long-term liabilities are those liabilities which are payable after one year or not payable within…

Q: Earnings are extremely important to the creditors?

A: The creditors are the person to whom the company owes the money to be paid in future.

Q: In methods of estimating doubtful accounts, how does income statements approaches differ from…

A: Income Statement Approach: under this approach, the estimated amount of bad debts expense is…

Q: Why might a company choose not to use revaluation accounting?

A: Revaluation accounting is a method to revalue non current assets of the companies as per fair value…

Q: How do you treat net loss on a balance sheet?

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: What are financial statements and explain different types of users of finanacial statement including…

A: Financial statements are statements that are prepared at the end of the period in order to analyse…

Q: What is the general trend of the company’s current assets? Did you observe any account with…

A: In case of multiple sub-parts, only first 3 parts shall be answered. The trend analysis can be…

Q: Why would companies perform a set-off of assets and liabilities?

A: Assets are the resources which help in generating profits. The assets can be controlled and used by…

Q: What is a transaction that has not been processed yet by a financial institution

A: A financial institution is an institution engaged in the business dealing with financial and…

Q: Explain when and why the users of financial statements are not able to detect earnings management.

A: Earning management means making the financial statement as per managements requirements and…

Q: True (t) or False (f) _____ A company whose current liabilities exceed its current assets may have…

A: Current liabilities are the obligations that are required to be settled within a period of 12…

Q: Why Are Financial Accounting and Bookkeeping So Different?

A: The bookkeeping is recording the transactions and accounting is process to classify, record the…

Q: Why is the distinction between current and long term liabilities important? What would you say about…

A: The  Assets are the resource that is Paramount to generate revenue. the classifications of assets…

Q: Explain the two primary reasons that a company’s book value in the balance sheet does not equal its…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: What are financial statements and explain different types of users of finanacial statement including…

A: Financial statements are statements that are prepared at the end of the period in order to analyse…

Q: Why do companies sometimes report non-GAAPresults?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines that must be followed in…

Q: Will the profits and expenses of a company impact disclosure and transparency?

A: Transparency refers to the access and disclosures of financial information. As financial information…

Q: fer from o

A: Revenue should be recognised when it is generated, not when it is received, according to the revenue…

Q: Explain the difference between earnings management and financial statement fraud.

A: Definition: Fraud: It refers to the intentional misrepresentation of the financial information or…

Q: defination of accounting?

A: The business has various transactions while operating, the stakeholders of the business need to know…

Q: Is debt good for a company? Why or Why not?

A: In terms of finance, debt can be defined as the borrowed money on which the borrower of the fund is…

Q: What are the limitations of the financial statements?

A: Definition:   Financial statements: Financial statements refer to those statements, which are…

Q: What is disaggregated financial information?

A:

Q: What difficulties do differences in accounting standards create for investors?

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.