BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
42 views

At the completion of the Darby Department Store audit, the president asks about the meaning of the phrase "in conformity with generally accepted accounting, principles" that appears in your audit report on the management's financial statements. He observes that the meaning of the phrase must include more than what he thinks of as "principles."

Required:

  1. Explain the meaning of the term "accounting principles" as used in the audit report. (Do not discuss in this part the significance of "generally accepted.")
  2. The president wants to know how an accounting principle becomes "generally accepted." Prepare a brief memo that provides an answer to the president's question.

1.

To determine

Explain the term “accounting principles” as per the audit report.

Explanation

The term “accounting principles” refers to the standards, guidelines or methods of reporting the accounting information in the financial statements of the companies and the auditor’s report refers to the these accounting principles applied by t...

2.

To determine

Prepare a memo to brief the president, how an accounting principle become generally accepted.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain the seven major warehousing activities.

Foundations of Business (MindTap Course List)

A bond that pays interest forever and has no maturity is a perpetual bond. In what respect is a perpetual bond ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)