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

Q: What are the two most common methods businesses use  in computing interest?

A: A sum paid or charged for using the capital or borrowed amount is called Interest.

Q: The Question is: True or False & Why?: Comparability across companies will be enhanced since ASC…

A: ASC606 is the new guideline set up by IASB and FASB together to overcome the disparity in revenue…

Q: What is a business combination?

A: Business combination refers to the combining of one or more business organizations in a single…

Q: ation differ

A: Accounting: It is the process of recording any financial transactions incurred in the financial year…

Q: What is the impact of the credit and collection functions on the other parts of a business (or on…

A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…

Q: why there is material uncertainty in the company?

A: There are several problems which are faced by the companies for both internal sources and external…

Q: Drawing on your background in accounting, can you think of any accounting procedure differences that…

A: Accounting Procedures: It  is the Procedure  followed by companies to  record  day-to-day financial…

Q: What is the importance of recording business transaction?

A: Business Transactions are the transactions carried out in the business in the financial year. It…

Q: Why isn't a single WACC applicable to all of a company's businesses?

A: WACC refers to the weighted average cost of capital. It is the sum of weights of different sources…

Q: What two different accounting equalities must be maintained in transaction analysis?

A: In transaction analysis, accounting equalities are:  Assets = Laibilities + Shareholders Equity…

Q: What is the origin of the term "double accounting systems" for certain types of accounting?

A: This subject discusses the origins of the phrase "double accounting systems" for specific forms of…

Q: Why is accounting technology important?

A: Accounting Technology:- Information technology plays a significant role in the accounting field. It…

Q: Intra-entity transfers between the component companies of a business combination are quite common.…

A:

Q: What are the different types of businesses? What makes them different?

A: An individual or group of individuals can carry out business using that form of business entity that…

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

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

Q: Which type of business is considered separate from those who own it?

A: A business means an organization that involves commercial activities. the main aim of the businesses…

Q: Which of the following associations would most likely describe the relationship between an internal…

A: Economic Event: Economic event means events which include transferring the ownership of resource…

Q: n what ways do accounting firms differ from one another?

A: solution concept accounting firms Accounting firms means a firm established for the purpose of…

Q: QUIRED: Identify business and nonbusiness transactions

A: Business transactions are identified as economic events that are made with a third party and these…

Q: Why is it important to organizationally separate the accounting function from other functions of the…

A: Accounting functions: The functions that are related to maintenance of records of the financial…

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: Do you agree with the accounting treatment that Overstock typically applied to the revenues…

A: Revenues include amount of service revenue provided and merchandise goods sold in the market. It is…

Q: What does it mean for a company to be a legal person and what does it mean for owners of a company…

A: A company refers to a voluntary association that is formed and organized by a group of people who…

Q: Why are some accounting systems called double accounting systems?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is business entity concept?

A: PLEASE GIVE A LIKE   .    It is a concept of accounting which refers to the transactions taking…

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: What are the different financial risks in business acquisition and combination?

A: Financial risk is the risk that the company has overpaid or has got more leverage than required or…

Q: Why is it important for a company to operate cross-functionally?

A: Solution- Importance of cross-functional:  1-It is important for a company to operate…

Q: What does this mean for a company?

A: Current ratio is the ratio that measures a company's ability to pay its short term debt obligations…

Q: Why should the responsibility for maintaining the accounting records be separated from the…

A: It has generally been seen that in large organizations, the responsibility for operating the…

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: What are the three types of business entities, and how do they differ?

A: The three types of business entities are: Sole Proprietorship Limited Liability Company Corporation

Q: Exactly what does it mean when people talk about "double accounting systems"?

A: This question explains about "double accounting systems"

Q: What control system and subsidiary accounts should be included in Ermler & Trump’s manual accounting…

A: Control system and subsidiary accounts that should be included in Ermler & Trump’s manual…

Q: Explain what the separate entity assumption means whenit says a business is treated as separate from…

A: Accounting Assumption The accounting assumptions are the columns on which the accounting system is…

Q: Which balance sheet accounts do the two companies have in common? Which balance sheet accounts stand…

A: Balance sheet:   It is a financial statement that states the value of assets, liabilities, and…

Q: Which accounting principle states that companies and owner should be treated as separate entities

A: A company is formed by the owner of the company but the owner is treated as separate entities and…

Q: How can the separate entity concept benefit the owner and the business

A: Separate entity concept: It refers to the practice of Recording separately the transactions of the…

Q: what is the purchase and pooling method of accounting for business combinations?

A: The Pooling of Interest method is followed in case of an amalgamation in the nature of the merger.…

Q: Why are there so many different accounting specializations?

A: This question explains about accounting specializations

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: explain in detail, what is a firm, why firms exist and what are Coasian transaction c osts?

A: Firm is referred to as the for-profit business organization like - limited liability company (LLC),…

Q: how difference the purchase and pooling method of accounting for business combinations

A: Amalgamation takes place in two ways ie, in the nature of merger nd in the nature of purchase. When…

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.