What practical difficulties are encountered by a trader due to incompleteness of accounting records?

Q: What are the benefits of generally accepted accounting principles (GAAPs)?

A: GAAP stands for Generally Accepted Accounting Principles.

Q: If the accounting information is not clearly presented, which of the qualitative characteristic of…

A: Introduction Information in the books of accounts need some qualities, which are to be fulfilled in…

Q: Please explain in your own words the issues that a financial analyst may encounter without…

A: The ledger accounts will be prepared taking the journal as the source document. The ledger accounts…

Q: Explain fraudulent financial reporting.

A: The examples of fraudulent financial reporting are:  • Modifying the time of recording sales to…

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 some of the most common types of accounting distortions that can arise?

A: Accounting refers to the process of examining and documenting all the financial and other…

Q: An accountant need not assess compliance with independence rules duringa. An examination of…

A:

Q: What are some possible pitfalls of using nonauthoritative sources when doing accounting research

A: Non-authorized Sources:- These are the sources that are not permissible by the government and other…

Q: you agree or disagree upon accounting debits and credits as an information system?

A: Debits and Credits 1) An account shows the effect of transactions on a given asset, liability,…

Q: Why do you think Accounting Standards are mandatory?

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

Q: How could auditors have discovered the off-balance-sheet financing described in the…

A: Off-balance sheet can be defined as procedures undertaken for inquiry and confirmation that can be…

Q: A financial statement user can not gain a complete understanding of the financial statements…

A: A Financial Statement is the Statement which company prepares to show their business activities and…

Q: what is the Judgement Traps in accounting?

A: Judgment trap is also known as judgment triggers which refers to the inherited issue that leads…

Q: Why do you believe Accounting Standards should be mandatory?

A: A document created by a rule-making body that prescribes how accounting transactions should be…

Q: How can SPEs be used to manipulate financial statements? Give one real case example on the misuse of…

A: Special purpose entities are the subsidiaries created for a specific purpose. These are used to…

Q: Is there a type of accounting that is not financial accounting?

A: Yes, there are two type of accounting which is not a financial accounting.

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: Discuss how a change in accounting policy is handled when it is impracticable to determine previous…

A:

Q: What are the common errors in accounting?

A:

Q: What is serious regulatory lapses in the system as difficulties in the financial system?

A: Financial system is the system where all the players are involved and exchange funds & money…

Q: Why does accounting rely on inexact or approximate measures?

A:

Q: With respect to the concept of materiality, which of the following statements is correct?a.…

A: Definition: Materiality: Materiality is the event or amount that influences financial statements on…

Q: What is the indirect effect of a change in accounting policy? Briefly describe the approach to…

A: Here is the answer :

Q: Information is considered material if:     it would have a bearing on decisions of those who use…

A: While preparing the books of accounts i.e. the financial statements the company needs to disclose…

Q: what are the difficulties may users of financial statements face it in using financial or accounting…

A: Accounting disclosure information: It is information that shows expenses and revenues of the…

Q: How does an inventory error effect the financial statements?

A: Inventory error:   Inventory errors are sometimes caused by making mistake in physical count, in…

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

A: Information spatiality could be a condition in social science wherever one party has higher…

Q: When is it permissible to violate generally accepted accounting principles (GAAP)

A: Certain types of information must be disclosed in a company's audited financial statements in…

Q: In the corporate world what is the common risk of an auditor encountered in terms of accounts…

A: Accounts receivable forms a part of current assets of the company and is representative of the dues…

Q: People with an indirect interest in a business would use report based on GAAP. TRUE or FALSE?

A: The persons including individuals and institutions have either direct or indirect interest in the…

Q: most common types of accounting distortions

A: Accounting distortions are differences occur when comparing the reported financial information with…

Q: Needles talks about the use of a continuum ranging from questionable or highly conservative to fraud…

A: Definition: Earnings: The bottom line of an income statement which is the result of excess earnings…

Q: How does the concept of consistency aid in the analysis of financial statements? Why type of…

A: General accepted accounting principles means those set of standards which is followed while…

Q: Why do companies find it convenient to alter allowance for doubtful accounts to manage earnings?

A: Allowance for doubtful Account : it is a contra assets account. Allowance for doubtful debt affects…

Q: Identify the following questions as most likely to be asked by an internal (I) or an external (E)…

A: Definition: Internal users: The internal users are the users of the information who are within the…

Q: Which of the following situations would raise an auditor's concern about the risk of fraudulent…

A: SOLUTION- Fraudulent financial reporting is the intentional misrepresentation of a firm's financial…

Q: Which of the following are not included in the external users of accounting nformation? O a. Tax…

A: There are two types of users of accounting information. Internal users  External users.

Q: defination of accounting?

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

Q: The fundamental accounting principle requires “full disclosure.”  What are the consequences of not…

A: Accounting principles are the laws and rules that companies must follow while reporting financial…

Q: How can you tell the difference between accounting mistakes and accounting fraud in financial…

A: This question tells about the difference between accounting mistakes and accounting fraud in…

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,…

Q: Discuss the types of errors in financial accounting and explain why some errors need to go through…

A: Accounting errors are the events which occur unintentionally and not for misleading the information…

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.