How does a company compute the effect of such changes in accounting principle?

Q: How does the time period assumption affect an accountant's analysis of business transactions ?

A: Time period assumption state that business organizations are required to prepare and present their…

Q: Why is GAAP Important? and how it will be used in understanding accounting

A: GAAP is a basic set of generally accepted accounting principles which work as a basic guideline in…

Q: Explain mandated changes in accounting principle.

A: Accounting principles are the uniform practices that are followed in the preparation of the…

Q: There are two basic accounting approaches to reporting accounting changes. What are they?

A: Accounting changes: Accounting changes are the alternations made to the accounting methods,…

Q: Why are accounting principles, once adopted, normally consistently applied over time?

A: Accounting principles are the rules and guidelines that companies must follow when reporting…

Q: how will a change from cash basis accounting to accural basis accounting positively and negatively…

A: Books of accounts can be maintained either using the cash basis accounting or using the accrual…

Q: What are the principles of accounting according to GAAP?

A: GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles,…

Q: When fresh start accounting is utilized, how are a company’s assets and its liabilities reported?

A: Except for deferred income taxes, all liabilities at the same time reported as future cash payments…

Q: why the concept of continuity, periodicity, and accrual accounting necessary for a company to…

A: Accounting principles are the set of guidelines, which are prepared in order to maintain uniformity…

Q: How are changes in accounting policies accounted for and disclosed?

A: Accounting policy: These are basically the rules, conventions and principles that are applied by the…

Q: Explain the changes in accounting principles.

A: Change in accounting principle is one of the type of accounting change it may undergoes during…

Q: Why is a company's accounting cycle so important? It is necessary to provide instances of why…

A: The financial accounting cycle of a firm refers to the whole process of recording and processing the…

Q: What are the accounting and disclosure procedures for accounting policy changes

A: The accounting and disclosure procedures for accounting policy changes will be explained :

Q: How do companies use information from their accounting systems and statements?

A: Accounting systems and statements are often used to support management decisions. An income…

Q: What is meant by a change in accounting principle? Describe the accounting treatment for a voluntary…

A:

Q: Discuss the types of accounting changes and the accounting for changes in accounting principles.

A: Accounting changes: When a company requires to sacrifice the consistent accounting methods and…

Q: What is meant by a change in accounting principle? Describe the possible accounting treatments for a…

A: Accounting principle:   These are the guidelines which are to be applied while preparing the…

Q: What is the indirect effect of a change in accounting principle?Briefly describe the reporting of…

A: Change in an accounting principle: This change occurs when a company decides to change from an…

Q: Which principle states that businesses should use the same accounting methods and procedures from…

A: Accounting principle: These are the guidelines which are to be applied while preparing the…

Q: Describe changes in accounting principles.

A: A change in an accounting principle is a change in a method used, such as using a different…

Q: Explain the accounting function within a firm. What does this function do, and why is it important?…

A: Accounting function: It is possible to classify accounting functions into two groups of functions,…

Q: How are changes in accounting principle applied?

A: Accounting Principles:   It refers to a set of guidelines that all organisations must follow while…

Q: How do business transactions affect the accounting records of a company?

A: Accounting Records - Accounting records are the transaction recorded by the organization from past…

Q: Explain the effect on the company's financial statements if a company switches from the historical…

A: A historical method is the accounting principle method in which the asset is recorded at the…

Q: How does the accrual basis of accounting provide different results when compared with the cash…

A: Cash Basis of accounting- Under cash basis, accounting entries are recorded as and when there are…

Q: Which principle or concept states that businesses should use the same accounting methods and…

A:

Q: Identify types of accounting changes and understand the accounting for changes in accounting…

A: Accounting changes: When a company requires to sacrifice the consistent accounting methods and…

Q: Explain how a company might use the accounting rules for impairment of long-lived assets to manage…

A: Long live assets: Those assets which are expected to provide the benefits of more than one year.…

Q: How reported accounting numbers can affect an individual's perceptions and actions.

A: Financial reporting means releasing the financial reports of the company to its shareholders and in…

Q: What are the two extreme approaches that a company might follow in determining appropriate…

A: The two approaches that company might follow in determining accounting policies to be followed under…

Q: Explain how and why some changes in accounting principle are reportedprospectively.

A: Changes in accounting principle: A change in accounting principle is said to be a change in a…

Q: Can every business transaction no matter how simple or complex be expressed in terms of its effect…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: (b) Change in accounting policy may have a material effect on the items of financial statements."…

A: Accounting policies are those rules, regulations and guidelines which needs to be followed at the…

Q: Identify at least two situations in which application ofdifferent accounting methods or accounting…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: The accounting and disclosure requirements for changes in accounting policie

A: This question explains about the accounting and disclosure requirements for changes in accounting…

Q: Will the profits and expenses of a company impact disclosure and transparency?

A: Transparency refers to the access and disclosures of financial information. As financial information…

Q: Why are adjusting entries necessary to portray a more accurate picture of a company's financial…

A: In the accounting cycle process, first transactions are recorded into journal, then recorded journal…

Q: Describe how changes in accounting principle typically are reported.

A: A change in an accounting principle is a change in a method used, such as using a different…

Q: what are the accounting standards codification and how companies apply them to their activities?

A: Accounting standard: It is a set of basic rules and principles which is set by the Financial…

Q: IFRS requires companies to use which method for reporting changes in accounting policies? a.…

A: Generally, no changes in accounting estimates are done as it affects the comparability of the…