State the accounting assumption, principle, qualitative characteristic, or constraint that is most applicable in the following cases.
Q: Describe the basic assumptions of accounting.
A: Accounting is a systematic process of identifying, recording, measuring, classifying, verifying,…
Q: What are the benefits of generally accepted accounting principles (GAAPs)?
A: GAAP stands for Generally Accepted Accounting Principles.
Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption,…
A: Accounting Principle - Every business entity i.e. proprietorship, partnership and company have to…
Q: Evaluate the strengths and weaknesses of interpretive accounting theory
A: Interpretive Accounting theory:-Interpretive Accounting theory has evolved and made significant…
Q: The reporting of accounting theory is related to what?
A: Accounting theory is all related to the preparation of financial statements of the business.…
Q: Describe significant accounting policies.
A: Definition: Accounting policies: Accounting policies are the specific principles and rules which…
Q: Which of the following are considered secondary characteristics of accounting information? a.…
A: Accounting information is used by various users for different purposes. The primary characteristics…
Q: Considering whether to use historical cost or fair value relates to which of the following…
A: The procedures applied and principles followed by the company to prepare its financial statements…
Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption,…
A: “As only one item is given in the question, it is assumed this particular answer is asked by the…
Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…
A: Accounting Principles: Accounting principles refers to the rules and guidelines that are to be…
Q: All of the following items are classified as accounting assumptions and coventions except for a.…
A: Accounting assumptions and conventions are basically the guidelines which are used in providing the…
Q: Determine the second level in the conceptual framework of accounting. a. Qualitative characteristics…
A: A conceptual framework of accounting is a system of ideas and major goal which lead to the making of…
Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…
A: Accounting assumption: These are the accounting practices or principles which are considered to be…
Q: Why is it necessary to develop a definitional frameworkfor the basic elements of accounting?
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: Review the basic assumptions of accounting.
A: Financial accounting structure: A system that records, maintains, and creates reports for the…
Q: (B) Why do you think standard setters have considered a single measurement base approach? In your…
A: The conceptual framework is an attempt by standard regulation authorities to define nature and a…
Q: State the different types of accounting.
A: Accounting refers to a process through which all day-to-day activities or transactions occurred or…
Q: are the two fundamental qualities that make accounting information useful for decision making. a.…
A: solution concept Relevance means the information that are relevant for the users of the financial…
Q: Accounting is sometimes described as the language of busi-ness. What is meant by this description?
A: Accounting: It refers to a process of recording and summarizing the financial transactions and…
Q: What is a mixed attribute measurement model? Why is it used in accounting?
A: (1) It is a measurement basis that is used to measure the value of assets and liabilities under "US…
Q: Why is it necessary to develop a definitional framework for the basic elements of accounting ?…
A: Accounting serves as the foundation for the creation of financial statements. Accounting is carried…
Q: Explain generally accepted accounting principles and define and apply several accounting principles.
A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…
Q: What are the two of the qualitative characteristics of accounting information that contribute to its…
A:
Q: Which of the following requires accounting information to be complete, neutral, and free from…
A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…
Q: Explain and applyunderlying accountingconcepts, assumptions,and principles
A: Accounting concepts and principles: Financial statements are prepared in accordance with the…
Q: Discuss about the accounting policies, selection, relevance, reliability, faithful representation…
A: Accounting policies are specific principle procedures and measures that are used to record,…
Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…
A: Going concern:
Q: Describe simply what accounting is.
A: Introduction: Accounting: Accounting is an art of recording , classifying , summarizing and…
Q: The essential characteristic(s) of accounting is (are)
A: Accounting is an art of recording, classifying, and summarizing in a significant manner and in terms…
Q: Meaning and types of accounting
A: Introduction: Accounting is one in all the foremost important roles of a corporation. An accountant…
Q: impact of measurement bases in the usefulness of accounting report.
A: Measurement bases are values used to measure particular items in the financial statements.
Q: Briefly explain the following generally accepted accounting principles with examples. a)…
A: a) Conservatism Principle DEFINATION: The accounting principle that only concerns about the…
Q: Identify each of the following terms/phrases as either an accounting (a) principle, (b)…
A: Accounting principle: These are the guidelines which are to be applied while preparing the…
Q: Qualitative characteristics of accounting information - Relevance - Reliability - Comparability…
A: The qualitative characteristics of accounting information is useful for decision and reporting…
Q: What is the aim of accounting, to put it in the broadest possible terms?
A: Introduction: A business's financial events and transactions may be summarized and recorded in…
Q: Which of the following requires accounting information to be complete, neutral, and free from…
A: Accounting Principles:
Q: Discuss Practical Implementations of any one generally accepted accounting Principle (GAAP),…
A: Generally Accepted Accounting Principles are used in preparing account of an entity. The purpose of…
Q: Why accounting is an infromation system? Explain with your own point of view with example.
A: Accounting Information Systems helps to perform the tasks in the job of Budget Analysis. An…
Q: Hypothetically discuss Assumptions of Accounting.
A: The organization and operation of a business are defined by key accounting assumptions. They…
Q: Which of the following sets includes only accounting assumptions and conventions? a. timeliness,…
A: b. matching, comparability, a period of time, and reliability c. the monetary unit, going concern,…
Q: Demonstration of the relationship between GAAP and accounting practices (e.g., matehing prineiple…
A: The process by which financial transactions of the business are recorded and communicated with the…
Q: What is GAAP, Generally Accepted Accounting Principles?
A: The Generally Accepted Accounting Principles (GAAP)is a set of rules used for helping…
Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or…
A: Accounting assumptions : As the name suggests, these are the assumptions to be considered by…
Q: Explain the accounting constraint of materiality.
A:
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- State whether if the statement is TRUE or FALSE 1.Lower of cost and net realizable value gives the lowest valuation if applied to individual item of inventory. 2.Professional fee arising directly from the acquisition of property and equipment are recognized as expense immediately. 3.The asset is cash or cash equivalent to settle a liability for more than twelve months after the reporting period is classify as current assets. 4.An excess of equity over current assets is equal to liabilities. 5.An asset is not depreciated if the fair value exceed the carrying amount. 6.Exchange has a commercial substance when the exchange result in the difference in future cash flows. 7.LCNRV should always be equal to net realizable value. 8.The amount of writedown of inventory to net realizable value and all losses of inventory should be recognized ad operating expense in the period the writedown or loss occurs. 9.The cost of abnormal anounts of wated materials is not included in the cost of self…1. Landscape, Inc. includes an estimate of warranty expense in the year in which it sells its lawn mowers, which carry a two year warranty 2. Lower of cost or market is used to value inventories. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answersWhat is a liability? a. all debts and obligation owed by the business b. fixed cost fall under the overhead c. any debt that extends for more than 1 year d. current assets minus inventory divided by current liabilities
- When a company has net income, what happens to its assets and/or to its liabilities? 2. Why must a company that gives a guaranty or warranty with its product or service show an expense in the year of sale rather than in a later year when a repair or replacement is made? 3. Is accrual accounting more closely related to a company’s goal of profitability or liquidity? 4. Under normal circumstances, will the carrying value of a long-term asset be equal to its market value?Which of the following best describes Accrued Liabilities?a. Long-term liabilities.b. Current amounts owed to suppliers of inventory.c. Expenses incurred, but not paid at the end of theaccounting period.d. Revenues that have been collected but not earnedWhich of the following best describes the proper accounting for interim financial reports? a. The interim period is viewed as an integral part of the annual accounting period. b. The interim period is viewed as a distinct, independent accounting period. c. Interim net income should be determined by using the same principles as those for the annual accounting period. d. Net income should be computed on the cash basis except for sales, cost of goods sold, and depreciation.
- is there any chance these other calculcations could be done please? thank you :) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest coverchoose the correct letter of answer If deposit for lease contract was recorded as Rent Expense,A. expense is understated.B.asset is not affected.C.profit is overstated.D. owner’s equity is understated. Inventory, beg. ₱50,000; Net purchases, ₱120,000; Cost of goods sold, ₱80,000. How much is the Inventory, end.?A. 90,000B. 120,000C. 70,000D. 80,000Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Payment is made to trade creditors for previous purchases
- What financial metric measures a company's ability to cover its short-term obligations with its most liquid assets and is calculated by excluding inventory from the current assets? A. Quick ratio B. Current ratio C. Inventory turnover ratio D. Return on assets ratioIndicate the section of an income statement in which each of the following is shown.a. Loss on inventory write-down. b. Loss from strike.c. Bad debt expense.d. Loss on disposal of a discontinued business. e. Gain on sale of machinery.f. Interest expense.g. Depreciation expense.h. Interest revenueListed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. a. In May 2021, Regent Corporation recorded as revenue $5,000 received in advance from a customer for a job that would be completed in June 2021. Violation: (Yes/No) Applicable Assumption/Principle: b. Sally Maze made sure to keep her personal expenditures separate from her marketing company books.…