Do you agree or disagree? Why?
Q: Accountants try to prepare income statements that are as accurate as possible. A basic requirement…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Define the phrase “earnings management.” Under what conditions, if any, is earnings management…
A: Payments and receivables are managed in connection to purchases in earnings management. It is done…
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A: Accounting policy is the rule or method which is adapted by any entity according to the accounting…
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A: Statement of changes in equity is a part of financial statements in which the transactions related…
Q: The financial statements of a company are management's, not the accountant's.” Discuss the…
A: Financial statement: Financial statements are prepared to summaries the account at the end of the…
Q: A theoretical measure does of income does not exist in the real world in which accountant must…
A: The theoretically correct measure of the income refers to the firm net income which determined on…
Q: The revenue recognition principle states that: (a) revenue should be recognized in the accounting…
A: The revenue recognition principle is the accounting principle that states that how and when the…
Q: Employees need the financial analysis to know if
A: Financial analysis refers to the process of evaluating the business operations, performance and…
Q: Which type of debit account is balanced in the income statement columns of a work sheet?…
A: Income statement: It is a financial statement that calculate the net income after deducting all…
Q: State some of the more serious problems encountered in seeking to achieve the ideal measurement of…
A: Net income: The amount which is computed by summing up all the revenues received during a specific…
Q: capi
A: A)Appropriate circumstances to capitalise tha cost as an asset instead of an expense A capitalized…
Q: An entity classifying expenses by function shall disclose additional information on the nature of…
A: Solution: An entity classifying expenses by function shall disclose additional information on the…
Q: What are some of the expenses associated with the provision of accounting data? What are some of the…
A: Will be explained:
Q: .In an accounting firm, the salary paid to auditors is considered indirect service costs. A.TRUE…
A: Direct Cost: Cost which are incurred directly to a specific cost object. This costs are traceable…
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A: (a) Cost: According to financial reporting the meaning of cost is the money transaction of the…
Q: For each of these independent situations, find the missing amounts. How would stakeholders view the…
A: For each of these independent situations, find the missing amounts. Formula = Net income or (loss)…
Q: Will you hire an accountant to prepare financial state-ments for your firm?
A: The financial statements of a firm are prepared to calculate the financial position f the firm at…
Q: Why is it necessary for accountants to assume that business entity will remain a going concern?
A: According to the going concern principle of accounting, it is assumed that the company's operations…
Q: For financial accounting purposes, the salary of Lake Company’s president is classified as…
A: Period costs: Period costs are the costs other than the product costs. These costs are not incurred…
Q: If a reporting entity has a choice of either expensing or capitalizing an item of expenditure, and…
A: If the entity is subject to a high degree of political scrutiny then it will adopt accounting…
Q: Choose the incorrect statement: a.) The objective of the external financial statements is to…
A: a) Basic purpose of an external financial statement is to communicate the economic effects of…
Q: t includes all the rules and processes needed to safeguard assets, maintain accuracy in accounting,…
A: Answer: Concept: Safeguarding assets and maintaining accuracy in accounting is all about internal…
Q: When an organization considers its work-in-process, how should it be classified on a balance sheet?…
A: Work in process is a part of the inventory component of balance sheets, Inventory is categorized…
Q: As an accountant you should be conversant with the physical and financial components of an…
A: Definition: Transaction process: The transaction process system helps a business to process all…
Q: Which of the following regarding GAAP is true?a. GAAP is an abbreviation for generally…
A: GAAP is the combination of accounting standards, accounting principles and procedures a company…
Q: How do the Accountants measure the net income of a specified operating period?
A: Net income: The bottom line of the income statement which is the result of excess earnings from…
Q: Income reported for a business entity depends on the proper recognition of revenues and expenses. In…
A: Recognition of revenues and expense refers to the timing and period in which they shall be recorded…
Q: Which of the following is a valid assumption from an accounting perspective? O A company that has…
A: Accounting Principles: The principles or procedures that are required to prepare and report the…
Q: The term net worth on a corporate balance sheet represents : a) the claim of the owners on the…
A: The balance sheet represents the financial position of the company that includes the assets,…
Q: When do accountants consider revenue to be realized?What basic question about recording revenue in…
A:
Q: Explain in what situations it would be appropriate to recognize revenue over time
A: Recognition of Revenue over time: In situations where the service or sales of goods is divided over…
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A: Facts in the given question are mentioned below: Profits are based on Director's Bonuses. Their…
Q: If a firm's expenses equal or exceed its revenue, what actions might management take?
A: Expenses are the costs or amounts that are incurred by an entity for meeting up the daily needs of…
Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…
A: Capital expenditure and revenue expenditure are 2 basic types of expenditure in accounting
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Q: estions have been posed to you by clients for which your manager requires What is the difference…
A: Explanation of the concept IFRS- International Financial Reporting Standards are standards which…
Q: financial information alone be insufficient for the ongoing informational needs of operat
A: Financial information is the data conveyed by the financial statements regarding the financial…
Q: Kathleen Battle says, “Retained earnings should be reported as an asset, since it is earnings which…
A: No, Kathleen Battle is not correct. The source of an asset includes some part of the retained…
Q: A prepaid expense is one of the assets which are on a balance sheet that a company or rather a…
A:
Q: Accounting is the process of matching Select one: a. Revenues and Costs b. Potential and Real…
A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…
Q: which manner the manager behave when choosing a particular accounting method to increase the…
A: Earnings management can be defined as the accounting method in order to depict a positive view in…
Some accountants have advocated that a company’s human assets be measured and included directly in the financial statements. For example, the costs of hiring and training an employee would be recorded as an asset that is amortized over the employee’s expected term of service. Do you agree or disagree? Why?
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- How do the Accountants measure the net income of a specified operating period?An analyst must be familiar with the determination of income. Income reported for a business entity depends on proper recognition of revenues and expenses. In certain cases, costs are recog- nized as expenses at the time of product sale; in other situations, guidelines are applied in capi- talizing costs and recognizing them as expenses in future periods. Required: a. Under what circumstances is it appropriate to capitalize a cost as an asset instead of expensing it? Explain. b. Certain expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the rationale for recognizing expenses on such a basis.An accountant must be familiar with the concepts involved in determining earnings of a business entity. The amount of earnings reported for a business entity is dependent on the proper recognition, in general, of revenues and expenses for a given time period. In some situations, costs are recognized as expenses at the time of product sale. In other situations, guidelines have been developed for recognizing costs as expenses or losses by other criteria. Instructions a. Explain the rationale for recognizing costs as expenses at the time of product sale. b. What is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain. c. In what general circumstances would it be appropriate to treat a cost as an asset instead of as an expense? Explain. d. Some expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the underlying rationale…
- An entity classifying expenses by function shall disclose additional information on the nature of expenses. The minimum disclosure does not includea. Depreciation c. Employee benefits b. Amortization d. AdvertisingIncome reported for a business entity depends on the proper recognition of revenues and expenses. In certain cases, costs are recognised as expenses at the time of product sale and in other situations costs are capitalised if they bring future benefits.In around 250 words, comment on the above statement. Your comments should include valid examples and illustrations.Briefly explain how research and development (R&D) expenditure should be accounted for according to the requirements of IAS 38. Briefly explain the potential impacts of the accounting rules for R&D expenditure under IAS 38 on the firm. Briefly explain why employee skill is not recognised as an asset.
- Financial accounting can also be described as a way to a. Tell the financial story of a company.b. Calculate the amount of taxes owed to the government.c. Determine employee satisfaction with their work environment.d. Measure the personal net worth of stockholders.State some of the more serious problems encountered in seeking to achieve the ideal measurement of periodic net income. Explain what accountants do as a practical alternative.Which of the following is not a requirement for expense reimbursements to be an accountable plan? Select one: a. Excess amounts must be returned to the employer within a reasonable period of time b. The employee must provide adequate documentation within a reasonable period of time c. The expense is incurred for sales or marketing purposes d. The expense is incurred for business purposes
- Accountants try to prepare income statements that are as accurate as possible. A basic requirement in preparing accurate income statements is to record costs and revenues properly. Proper recognition of costs andrevenues requires that costs resulting from typical business operations be recognized in the period in which they expired. Instructions(a) List three criteria that can be used to determine whether such costs should appear as charges in the income statement for the current period.(b) As generally presented in financial statements, the following items or procedures have been criticized as improperly recognizing costs. Briefly discuss each item from the viewpoint of matching costs with revenues and suggest corrective or alternative means of presenting the financial information.(1) Receiving and handling costs.(2) Cash discounts on purchases.A prepaid expense is one of the assets which are on a balance sheet that a company or rather a business is paying in advance for the services and goods that they are yet to receive in the future. Prepaid expenses’ value is made over time onto the income statement but is initially recorded as an asset. So as to ensure a record sense of accountability, a company must adjust these expenses so as to ensure that the expenses are recognized within the period that the expenses are incurred within the business period. This expense is placed in the debit column before it expired, however, it has to be moved to the credit column. There are a number of adjustments that most of the companies do make entries to before they prepare their ultimate report on the financial period. Some of these adjustments include; accrued expenses, accrued revenue, depreciation expenses and even deferred revenues. What is your opinion?Accounting is the process of matching Select one: a. Revenues and Costs b. Potential and Real performance c. Cash inflows and outflows d. Benefits and Costs Accounting provides information on Select one: a. All of the answers are correct b. Financial conditions of an institution c. Company's tax liability for a particular year d. Cost and income for managers Public Accounting, as a sub-discipline of accounting, includes: Select one: a. Management Accounting b. Cost accounting c. Internal auditing d. Managerial Advisory services
