Relevant financial information is: Select one: а. free from bias and error
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A: Financial information is the information regarding the financial aspects of business and this…
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A: Financial information must be relevant for the decision making by the management and all other…
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A: Accounting information is used by various users for different purposes. The primary characteristics…
Q: Which concept states that accounting information should be complete, neutral, and free from material…
A:
Q: Critically comment on Positive Accounting Theory (PAT) (
A: Accounting is a process that involves the recording of the transactions of financial nature.
Q: 2. Explain the following concept used in the preparation of financial statement i. Relevance ii.…
A: (i) Relevance Information should be relevant to the decision making needs of the user. Information…
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A: Introduction: Financial statements that summarize a company's operations and financial performance.…
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A: Faithful representation requires that transactions and events should be accounted for in a manner…
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A: Policy instrument refers to the techniques that are used by the authorities of government or the…
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A: SOLUTION ACCOUNTING IS THE SYSTEM OF RECORDING SUMMARIZING BUSINESS AND FINANCIAL TRANSACTIONS AND…
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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: nship or differences between Accounting and accountability?
A: Accounting: Every business has various types of transactions like monetary, goods and services. To…
Q: 8. Financial information is capable of making a difference in decisions if it has predictive value…
A: Financial information: It implies to the information that relates to the company's financial status…
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A: Financial statements (or financial reports) are official records of a company's, person's, or other…
Q: What is a mixed attribute measurement model? Why is it used in accounting?
A: (1) It is a measurement basis that is used to measure the value of assets and liabilities under "US…
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A: Conceptual framework in accounting means rules, regulations and guidelines that are used for…
Q: Anticipate TWO (2) drawbacks from the adverse selection on financial safety nets.
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A: Definition:
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A: Ans 12. Financial factors are defined as the type of the factors, which consists of the fixed asset…
Q: The use of management accounting is Legally obligatory O a . False O b . True
A: Accounting is very vast scope, it has, several branches like cost accounting, financial accounting…
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A: The question is multiple choice question. Required Choose the Correct option
Q: What is information asymmetry? Why is it considered a problem to the financial system?
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A: Accounting Principles:
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A: Standardization is the process where all the organizations of a certain industry follow the same…
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A: Financial Accounting Standards Board: It is commonly known as FASB. It is a private, non-profit…
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A: The accounting is based on various principles known as GAAP.
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A: Financial reporting consists of: Financial statements Annual report Prospects issued to the…
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: 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: The REA model is based on the premise that ‘‘business data must not be preformatted or artifi-…
A: REA Model stands for Resource, Events, Agents model is the model in which accounting system for the…
Q: Which of the following management assertions is not associated with classes of transactions and…
A: Rights and obligations represent that the company has the right to use the assets and obligation to…
Q: In current practice, accounting provides only quantitative information that is useful in making…
A: Here asked about the True / False which are provided the details of the statement which are related…
Q: Information is considered to be if it is of a nature that will influence the financial decisions of…
A: Comments; Multiple Questions asked Material information is the one that influences the financial…
Q: Explain differential effects on accounting standards.
A: Accounting standards deals with the issues of: Recognition of events and transaction in financial…
Q: Financial accounting is concerned with how and why profits arise. Select one: True False
A:
Q: for financial reporting infromation to be useful it has to possess certain qualitataive attributes.…
A: The question is based on the concept of qualitative characters of financial reporting used for…
Q: Under the Conceptual Framework for Financial Reporting which of the following statements is not a…
A: CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING: It is a body of interrelated objectives and…
Q: accounting mitigate the problem of agency theory t
A: As per agency theory, management acts as agent of shareholders. Shareholders are owners and…
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- Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard. c. It relies on the perception of the users with regard to service provided. d. It is directly derived from scientific management theories.An important goal of a responsibility accounting framework is to help ensure which of the following? A. decision-making is made by the top executives. B. investments made by each segment are minimized. C. identification of operating segments that should be closed. D. segment and company financial goals are congruent.Which of the following is not an objective used in the balanced scorecard approach? Customer Financial Vendor Learning and growth
- Which of the following statements is false? A. The four dimensions of performance that are considered in a balanced scorecard are financial, customer, internal process, and learning and growth B. A balanced scorecard will include qualitative and quantitative measures C. A balanced scorecard is the campatibility between personal goals and the goals of the organization D. Stakeholders cannot include stockholdersIf a particular accounting choice is considered aggressive in nature, then the fi nancialperformance for the current period would most likely :A . be neutral.B . exhibit an upward bias.C . exhibit a downward bias.While business decisions should be data-driven and usually involve consideration of quantitative financial information, that doesn't mean that qualitative information is not important as well. The goal of management accounting is to provide relevant information for decision-making. Qualitative considerations require subjective judgement and need multiple opinions. List and discuss 4 examples of such qualitative considerations for both decisions to accept or reject a special order and make or buy decisions.
- What is meant by comparability when discussing Qualitative Characteristicsof Useful Financial Information:a. Information has predictive or confirmatory value.b. Information is reasonably free from error.c. Information that is measured and reported in a similar fashion acrosscompanies.d. Information is timely.The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Relevance Neutrality Verifiability Faithful representation Completeness Understandability Predictive value Timeliness Comparability Confirmatory value Materiality Free from error Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. a. Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. b. Quality of information that confirms users’ earlier expectations. c. Imperative for providing comparisons of a company from period to period. d. Ignores the economic consequences of a standard or rule. e. Requires a high degree of consensus among individuals on a given measurement. f. Predictive value is an ingredient of this fundamental quality of information. g. Four qualitative characteristics that are…Financial analysis is significant because it a. Ignores qualitative aspect b. Judges operational efficiency c. Suffers from the limitations of financial statements d. It is affected by personal ability and bias of the analysis
- Choose the best answer to fill in the blank: “A key difference between management accounting and financial accounting reports is that management accounting reports tend to______.” a. be more general purpose b. have longer reporting intervals c. rely more on objective, verifiable evidence d. be forward lookingWhich of the following statements is false? Group of answer choices A. The four dimensions of performance that are considered in a balanced scorecard are financial, customer, internal process, and learning and growth. B. A balanced scorecard will include qualitative and quantitative measures. C. Stakeholders cannot include stockholders. D. A balanced scorecard is the compatibility between personal goals and the goals of the organization.Which of the following is true about designing an accounting−based performance measure? A. Management's beliefs are not required during the analyses. B. The issues considered in each step are independent. C. The decisions made in steps are followed in a hierarchical order. D. Behavioral criteria are important when evaluating the steps