Answered: Which fundamental characteristic of…

Which fundamental characteristic of accounting requires that financial statements are prepared in a similar way year after year?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 28Q: Does the order in which financial statements are prepared matter?

See similar textbooks

Related questions

Q: The principles and objectives that guide the creation of accounting information under accrual…

A: The matching principle, which is related to accrual accounting, asserts that an expense must be…

Q: What is the purpose of Regulation S–K? Choose the correct.a. Defines generally accepted accounting…

A: Correct option is D i.e. indicates which companies must file with the SEC on an annual basis.

Q: Which sections of an annual report do IFRSs apply to? a) Management report b) Financial statements…

A: management report is used as a means of communicating whatever information that is essential to be…

Q: Application of Generally Accepted Accounting Principles (GAAP) (e.g., matehing prineipte,…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Why are accounting principles, once adopted, normally consistently applied over time?

A: Accounting principles are the rules and guidelines that companies must follow when reporting…

Q: Which of the following is correct about the General Purpose Financial Statements? Oa.…

A: General purpose Financial Statement : General purpose Financial Statement are those statements which…

Q: Distinguish between FASB Accounting Standards Updates and FASB Statements of Financial Accounting…

A: Financial accounting standard board (FASB): The FASB is an independent, designated and non-profit…

Q: Generally accepted accounting principles play an important role in financial reporting.a. What is…

A: Requirement a:

Q: The standards, procedures, and principles companies must follow when preparing their financial…

A: Accounting is the process of identifying, recording, summarizing, and analyzing accounting…

Q: Describe changes in accounting principles.

A: A change in an accounting principle is a change in a method used, such as using a different…

Q: Which of the following is most associated with financial accounting reports? a.can be prepared for…

A: Introduction: The publishing of an organization's financial performance to its stakeholders and the…

Q: Discuss the importance of accounting standards for the purpose of preparing financial reports.

A: Accounting Standard Accounting Theory

Q: What is a mathematical equation in accounting? Which financial statement contains information on the…

A: This question tells about mathematical equation in accounting and financial statement contains…

Q: GAAP (general accepted accounting principle)

A: GAAP is the set of principles to be followed during the preparation of financial statements. It is…

Q: Briefly describe the organization that is responsible fordeveloping accounting measurement rules…

A: Accounting concepts and principles: Financial statements are prepared in accordance with the…

Q: What exactly is accounting? Describe and debate the accounting standards and assumptions

A: SOLUTION- MEANING OF ACCOUNTING - IT IS A PROCESS OF RECORDING , SUMMARIZING ,ANALYZING AND…

Q: what are the accounting concepts? define in detail every one of them in financial accounting.

A: Accounting concepts are the basis of financial accounting. An accounting concept is a fundamental…

Q: Which fundamental characteristic of requires that financial statements are prepared in a similar way…

A: option c is the correct answer.

Q: If an event occurs ‘after the reporting period’, then from the perspective of accounting standards,…

A: International Accounting Standard -IAS 10 says about events after reporting period. It states the…

Q: Listed below are several types of pronouncements that the FASB issues. Following the lis is a series…

A: FASB stands for Financial Accounting Standards Board that is a private, not-for-profit organization…

Q: Which of the following statements is true? A All information related to operating activities must be…

Q: Accounting equation is the basis for the preparation of statement of financial position in…

A: A company's total assets are equal to the sum of its liabilities plus its shareholders' equity,…

Q: true or false according to PAS 1, PFRS apply to financial statements as well as to other…

A: Accounting principles are general rules and guidelines that the company follows while recording and…

Q: Financial statements may be prepared for which time period? Select one: a. Any time period. b. One…

A: Financial statements consist of Profit or loss account/income statement , balance sheet,cash flows…

Q: these are the current set of GAAP or Generally Accepted Accounting Principles. what is it?

A: Generally accepted accounting principles(GAAP) refers to a set of accounting principles issued by…

Q: The life of a business is divided into specific time periods, usually a year, to measure results of…

A: The time period assumption divides the life of the business into equal periods. Financial statements…

Q: How reported accounting numbers can affect an individual's perceptions and actions.

A: Financial reporting means releasing the financial reports of the company to its shareholders and in…

Q: What are the two extreme approaches that a company might follow in determining appropriate…

A: The two approaches that company might follow in determining accounting policies to be followed under…

Q: The FASB issues accounting standards in the form of: Financial Accounting Standards. Financial…

A: An accounting standard is a common set of principles, standards and procedures that define the basis…

Q: ancial position in accordance to IFRS finacial statement presentation. Expain?

A: Accounting Equation is nothing but in simple terms, there should be a balancing entry i.e if there…

Q: Explain the “due process” procedures followed by the FASB in developing a financial reporting…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: The accounting and disclosure requirements for changes in accounting policie

A: This question explains about the accounting and disclosure requirements for changes in accounting…

Q: Name five important significant issues face the accounting profession and annual reporting

A: Following are the significant issues faced by the accounting profession and annual reporting

Q: Which of the following is most associated with financial accounting reports? a.prepared in…

A: Introduction: Financial reporting is characterized by the publishing of financial statements, which…

Q: During the lifetime of an entity, accountants produce financial statements at arbitrary points in…

A: Some of the basic accounting concepts that are globally followed are enumerated as below. 1. Accrual…

Q: What happened to assets, earnings, dividends, and cash flows during the financial year? Accounting…

A: Description Statement or Report 1 Statement of Stockholders equity 2 Statement of…

Q: What is the accounting equation? Which financial statement reports the accounting equation?

A: The accounting equation is the formula used to capture the effect of the relationship of financial…

Q: What group or organization is/was responsible for the issuance of Accounting Research Bulletins?

A: Accounting Research Bulletins are the documents on Various problems and challenges faced in the…

Q: Which of the following accounting concepts do accountantsand auditors assess by using financial…

A: Financial Analysis is the process of evaluation of finance related transactions to determine…

Q: What approach are companies required to follow in preparing interim financial statements?

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: The three heading lines of financial statements typically include which of the following?A. company,…

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

Q: Identify and discuss the chronological steps of the accounting cycle and preparation of the…

A: The accounting is a process of identifying, classifying and recording the transactions of the…

Question

Which fundamental characteristic of accounting requires that financial statements are prepared in a similar way year after year?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The three heading lines of financial statements typically include which of the following? A. company, statement title, time period of report B. company headquarters, statement title, name of preparer C. statement title, time period of report, name of preparer D. name of auditor, statement title, fiscal year end
What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?
The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
The __________ represents the sequence of steps in the accounting process. a. fiscal year b. fiscal period c. accounting cycle d. work sheet
Which area of accounting needs a computerized accounting information system the mostâ€”payroll, tax, or preparing financial statements?
How does the balance sheet at the end of an accounting period relate to the other four financial statements?
The metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholders
When a company recognizes revenue during a period, what does it also recognize in its balance sheet?
Does the order in which financial statements are prepared matter?
Which fundamental characteristic of requires that financial statements are prepared in a similar way year after year? Select one: a. Faithful representation b. Understandability c. Comparability d. Relevance
If an event occurs ‘after the reporting period’, then from the perspective of accounting standards, it is considered that the event has occurred between the ‘end of the reporting period’ and the ‘date when the financial statements are authorised for issue’. What is the date when the financial statements are authorised for issue’?
Financial statements and reports What happened to assets, earnings, dividends, and cash flows during the financial year? Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information. A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of stockholders’ equity, and other financial information for analysis. The following table lists descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description. Description Statement or Report Explains the…