b DONJ C d e Support your evaluation with reference to relevant accounting concepts, principle procedure and where appropriate an example. Internal controls lead to barriers in smooth workflow of an organisation. Sole proprietorship is the best form of organisation. A business with high cash balance must be profitable Journal and ledger duplicate each other and serve as a substitute of each other. Closing entries are a substitute for adjusting entries.

b DONJ C d e Support your evaluation with reference to relevant accounting concepts, principle procedure and where appropriate an example. Internal controls lead to barriers in smooth workflow of an organisation. Sole proprietorship is the best form of organisation. A business with high cash balance must be profitable Journal and ledger duplicate each other and serve as a substitute of each other. Closing entries are a substitute for adjusting entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Match each concept with the definition that best describes it. Expense recognition principle (matching [ Choose] principle) [ Choose ] Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur. Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash. The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied. Information that accurately depicts what really happened. The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue. An assumption that accountants can divide the economic life of a business into artificial time periods. Monthly or quarterly accounting time periods. An accounting period that extends from January 1 to December 31. Revenue recognition principle Time period assumption Calendar year…
Which of the accounting controls ensure that a company's resources are used efficiently and economically? Select one: a. All of the available choices b. Making use of any payment discounts that are available c. Paying bills on time Od. Bidding for suppliers
Accounting information provides useful information about business transactions and events. Those who provide and use financial reports must often select and evaluate accounting alternatives. The Conceptual Framework examines the characteristics of accounting information that make it useful for decision-making. It also points out that various limitations inherent in the measurement and reporting process may necessitate trade-offs or sacrifices among the characteristics of useful information. Instructions a. Describe briefly the following characteristics of useful accounting information. 1. Relevance. 2. Faithful representation. 3. Understandability. 4. Comparability (consistency). 5. Neutrality. b. b. For each of the following pairs of information characteristics, give an example of a situation in which one of the characteristics may be sacrificed in return for a gain in the other. 1. Relevance and faithful representation. 2. Relevance and consistency. 3. Comparability and consistency.…
Explain the various methods used to measure and report the performance of a business in accounting theory. What are the limitations of these methods, and how can businesses overcome them to provide more accurate and reliable information to stakeholders?
The basic function of financial accounting is to Select one: a. Interpret financial data b. Record all business transactions c. No correct answer d. Assist the management in performing functions effectively Accounting is also defined as an "Information System" because? Select one: a. The function of accounting is to provide quantitative information, primarily financial in nature about economic entities. b. All of the answers are correct c. Accounting provides required information for anyone seeking it d. It is a system which provide information Public accounting, as a sub-discipline of accounting, includes: Select one: a. Internal auditing b. Management accounting c. Management advisory services d. Cost accounting
Which of the following statement is false? 1.Financial Accounting is optional. 2.Management Accounting is used by internal users. 3.Financial Accounting is based on double entry system. 4.Management Accounting is future oriented.
Accounting information provides useful information about business transactions and events. Those who provide and use financial reports must often select and evaluate accounting alternatives. The FASB statement on qualitative characteristics of accounting information examines the characteristics of accounting information that make it useful for decision-making. It also points out that various limitations inherent in the measurement and reporting process may necessitate trade-offs or sacrifices among the characteristics of useful information. Instructions a. Describe briefly the following characteristics of useful accounting information. 1. Relevance. 2. Faithful representation. 3. Understandability. 4. Comparability. 5. Consistency. b. For each of the following pairs of information characteristics, give an example of a situation in which one of the characteristics may be sacrificed in return for a gain in the other. 1. Relevance and faithful representation. 2.…
V5. Match the following ____ Complexity in business operations a. Management compensation ____ Timely information b . Accounting procedure that a company ____ Information for control and uses monitoring c. Current and predictive information ____ Differential information d. Need for more specific reports ____ Accounting Policies e. Substantive information that is not in the financial reports f. Financial information must be quantitative g. Financial information not useful in reports
Financial statements should reflect a true and fair view of the business. what is meant by this statement by explaining thequalitative characteristics of financial statements? “True” of “False”:(5)Q.1.3.1 Management accountants use IFRS to prepare financial statements Q.1.3.2 One of the essential functions of management is controlling Q.1.3.3 The general ledger is a table used to summarise similar transactionsso as to facilitate fewer postings into the bookkeeping systemQ.1.3.4 According to the business entity rule, the books of account of abusiness may reflect the personal affairs or wealth of the owneroutside of the businessQ.1.3.5 The formal bookkeeping system is always done manually by theowner of the business
Which one of the following characteristics of accounting information is related to Objectivity? O a. The accounting information presented is truthful. Ob. The stable accounting treatment of similar transactions. OC. The accounting information must assist the users for making decision. Od. The accounting information is prepared and reported in a neutral way.
Which of the following statements about accounting information is TRUE? Select answer from the options below Accounting communicates financial information about a business to both internal and external users. Accounting information is useful to external users such as the directors of a company. Accounting information is useful to internal users such as labour unions. Accounting communicates detailed financial information to the competition.
Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position. a. Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. b. General-purpose financial reports are most useful to company insiders in making strategic business decisions. c. Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. d. Capital providers are the only users who benefit from general-purpose financial reporting. e. Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. f. The objective of financial reporting is the foundation from which the other aspects of the framework logically result.