What method of determining operating income is required under GAAP for financial statement distribution to external users?

Q: How is a financial statement under IFRS different from

A: Solution- In IFRS you need to provide Other Comprehensive Income Statement also in addition to…

Q: What is the purpose of financial statement analysis?

A: Financial statements are written records that convey the information on the financial performance,…

Q: Choose the correct. Which of the following items is required to be disclosed by geographic area?a.…

A: Information for the segment needs to be disclosed by geographic area. a. Total asset is the…

Q: Requirements: Comprehensive income and financial position.

A: Financial statements are those statements and reports which are prepared at the end of accounting…

Q: Discuss the significance of the following assumptions in the preparation of an entity’s financial…

A: Accounting Assumptions:- Assumptions are derived from past experience and when it proves to be…

Q: An objective of financial reporting is

A: Financial reporting uses financial statements to disclose financial data that indicates the…

Q: When are financial statements considered authorized for issue?

A: The monetary record date is the urgent date at which the monetary situation of a substance is…

Q: Identify the objective and qualitative qualities of financial reporting information as well as the…

A: Introduction: Financial reporting: Financial reporting is the process of communicating information…

Q: What qualitative and quantitative disclosures arerequired related to revenue recognition?

A: Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific…

Q: What method of determining operating income is required under GAAP for financial statement…

A: The operating income is determined using the two methods. Variable costing method Absorption…

Q: Explain the qualitative characteristics of financial reporting information.

A: Conceptual Framework: The FASB's Conceptual Framework for Financial Reporting states the objectives…

Q: In addition to the financial statement elements arrayed in the basic financial statements, what are…

A: Definition: Financial Statements represent a formal record of the financial activities of an entity.…

Q: Should the company prepare its financial statement based on IFRS or US GAAP?

A: Financial statements are the detailed records pertaining to the business. These are prepared by the…

Q: Explain what characteristics should information have to best meet the objective of financial…

A: Financial reporting:   Financial reporting is the procedure to communicate the information obtained…

Q: Describe the revenue and collection cycle,including typical source documents.

A: Introduction: Income statement: Income statement is the financial statement of the company that is…

Q: How to prepare SOFP AND INCOME STATEMENT for this question?

A: Financial statements are the records of the economic activities performed by the business to earn…

Q: On which financial statement do revenues appear?

A: Revenues and expenses are the accounts which are required to compute the Net income earned or net…

Q: . Distinguish between the modified all-inclusive income statement and the current operating…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to…

A: GAAP: its also called as US GAAP , is an acronym for Generally accepted accounting principles. These…

Q: What assumption is made regarding the external users of financial statements?

A: Financial Statements: The organization records the financial information related to transactions.…

Q: Define current operation income?

A: Current operation income otherwise called as operating income.Operating Income: Operating income is…

Q: What type of segment information must companies provide in interim financial statements?

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: Distinguish between horizontal and vertical analysis of financial statement data.

A: Following is the difference between horizontal and vertical analysis of financial statement data:…

Q: The conceptual framework for financial reporting (CF) allows for two measurement bases. What are…

A: This question explains about the conceptual framework for financial reporting (CF) allows for two…

Q: Income statements prepared under IFRS usually report an item titled finance costs. What do finance…

A: International Financial Reporting Standards: These are defined as the set of accounting rules and…

Q: How are operating items projected on financial statements?

A: Solution:- Operating expenses are indirect expenses which includes selling, distribution, admin…

Q: what is the Criteria for recognising the elements of the financial statements

A: Criteria for recognizing the elements of the financial statements The flow of Future economic…

Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…

A: Financial statements: Financial statements are the summary of transactions presented in the form of…

Q: Why is continuity assumption,separate entity assumption and cost principle so important for…

A: Continuity means the assumption and principles will be continued to be followed every year so that…

Q: Identify the objective and qualitative characteristics of financial reporting information and the…

A: Financial reporting: Financial reporting is the procedure used to communicate the information…

Q: Elaborate on the internal and external uses of financial statement analysis

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: Identify significant accounts and relevantassertions related to the revenue andcollection cycle.

A: Revenue and collection cycle: Under this procedure, the collection period from the customer is to be…

Q: Describe presentation and disclosure regarding revenue.

A: The core principle of IFRS 15 is that revenue is recognised when the goods or services are…

Q: Explain, using practical example the effect of accruals figures on the preparation of a financial…

A: Accrual System of Accounting is a system where expenses and revenues are recorded as and when they…

Q: Which of the following items is not required to be reported in interim financial statements for each…

A: Justification for the incorrect answer:

Q: Costs of a product that are regarded as an asset for financial reporting under GAAP are called

A: Cost of product are regarded as an asset if the product is not yet sold. Product cost are also known…

Q: explain issues pertaining various conceptual models for the measurement of the elements in the…

A: Financial Statements :- Financial statements  are known as the composed type of articulations of a…

Q: What are comparative financial statements? What issue is introduced when entities present…

A: Comparative financial statement= This is the complete set of financial statements that the business…

Q: Outline revenue recognition criteria under modified accrual accounting

A: Modified accrual accounting: The standards for this approach are set by the Government Accounting…

Q: Which of the following items is required to be disclosed by geographic area?a. Total assets.b.…

A: Information for the segment needs to be disclosed by geographic area. Identify the correct option:…

Q: how is the feature of materiality and aggregation applied in the presentation of financial…

A: Preparation of Financial statement includes preparing of final accounts, preparing ratios, comparing…