Why might a company choose not to use revaluation accounting?

Q: In what way may the use of percentage depletion violatesound accounting theory?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: Why might different companies account for similar transactions in different ways?

A: Financial statement includes both income statement and the position statement of the company. These…

Q: In what ways does revenue recognition differ from other financial accounting procedures?

A: Definition: Every corporate entity should record revenues when they are generated, regardless of…

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: Ethics within inventory estimates and other creative accounting methods. Channel stuffing, swaps,…

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: analyze company disclosures of signifi cant accounting policies

A: Accounting principles are the principles that are framed by the Company to carry on the activities…

Q: What are the advantages and disadvantages of reviewing the balance statement for a company.

A: Any financial statement typically lists a company's assets and debts, including shareholder equity…

Q: Why do you think Accounting Standards are mandatory?

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

Q: If a company failed to record an accrued income, what would be the effects?

A: Accrued income is that income which is being earned by the business for the particular period of…

Q: What is meant by GAAP? Why should companies follow GAAP in reporting to external users?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

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: Difference between domestic accounting and International accounting?

A: Accounting is a tool of recording, summarising and analysing the financial transactions and events…

Q: ompany can not rely on net income as a valid measure to pay fixed charges

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Q: Which of the following is most closely linked to accounting conservatism? a. Lower-of-cost-or-market…

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

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Q: What are the common errors in accounting?

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Q: Why do you think " Gross versus Net"  became such a big  issue in accounting?

A: Gross includes all the deduction such as return, allowance, depreciation, and others while the net…

Q: Under what conditions should a company disclose the amount of sales from a major customer?

A: Sales: A sale refers to a transaction that take place between two parties where a buyer receives…

Q: What are opportunity costs? Explain why opportunity costs are not recorded in financial accounting…

A: Opportunity cost is the value or benefit of the next best alternative given up when making a choice.…

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

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Q: What is meant by Not-for-profit accounting?

A: Accounting represents the system of maintaining records of day-to-day business operations of an…

Q: What does it mean to recognize an accountingtransaction?

A: The accounting transactions that directly or indirectly alters the financial aspect of the…

Q: Why are some managers motivated to manipulate amounts reported in the financial statements?

A: Financial statements are prepared at the end of the year to analyse the financial position and cash…

Q: Why must a company look at current financial records before making changes to reach new financial…

A: Financial records are the summarized transaction of a company. Financial records can be categorized…

Q: How is a change in accounting estimate applied?

A: A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or…

Q: Comment on the statement that what a company’s income statement reveals is interesting, but what it…

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

Q: Which of the following principles of accounting are not directly related to accounting depletion…

A: Correct Option : Historical Cost Depletion means the allocation of cost of natural resources…

Q: Identify a limitation to using ratio analysis when examining companies reporting under different…

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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: What is the desired benefit from revising an accounting standard?

A: Financial Accounting Standards Board:   It is commonly known as FASB. It is a private, non-profit…

Q: Why do companies sometimes report non-GAAPresults?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines that must be followed in…

Q: Which of the following would not affect a company's net income?

A: Note as more than one question is posted i am providing you answer for question 1. Net income is…

Q: Which of the following costs would not be included in accounting financial statements? O A.…

A: Financial statement includes all those costs that are incurred in the business such as sunk cost,…

Q: defination of accounting?

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

Q: liabilities not be reported on the balance sheet?

A: Contingent liabilities are liabilities, the question of settlement of them arise only on happening…

Q: you think switching to an IFRS formatted balance sheet with the accounts rearranged will affect…

A: Meaning if IFRS: It is a set of accounting standards developed by the International Accounting…

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,…