Which of the following is incorrect? *Financial statements are a summary of voluminous documents, events, andtransactions of a business unitO Similar and closely related items should be under appropriate caption or sectionInformation must be arranged in a meaningful manner and in accordance withaccepted accounting practicesO All of the aboveO Accounting as a language has a vocabulary of its ownO None of the above

Accounting system is a structured system that is incorporated in a business entity to collect,…

Answered: Which of the following is incorrect?

Business

Finance

Which of the following is incorrect?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 10MC: Which of the following statements is incorrect? The practice of management accounting is fairly...

See similar textbooks

Related questions

Q: It says that step a is wrong. That those are not the right ROI's. Is there another way to solve that…

A: Introduction:- Return on investment indicates how well an investment performed in comparison to the…

Q: Give two examples of errors of principle?

A: Errors of principle refers to errors that are carried out at time of noting down transactions…

Q: Why does the FASB recommend the direct method over the indirect method?

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

Q: Difference Between Traceability and Controllability?

A: Following is the answer to the given question

Q: What does overstated mean?

A: Definition of Overstated:- Overstated uses two way terms by accountant: The entered or reported…

Q: Are there any reasons to question the validity of the CAPM?Explain.

A: In any ‘well-diversified portfolios’ the relationship between the ‘risk’ and the ‘required rate of…

Q: What is the purpose of a Limit Test?

A: Definition: Limit test: It checks the data by evaluating it with the predetermined upper and…

Q: Which of the following is false about Faithful Representation?

A: Answer Faithful representation is the requirement that the financial statements should be accurate…

Q: What is the distinction between comparability and consistency?

A: Comparability means to make comparison between or among the companies according to their status…

Q: Which of the following statements is false about CD's

A: Certificate of Deposits or CD's is offered by banks or financial institutions. The CD's are deposits…

Q: Which of the above statements is/are true?

A: Factory overhead allocation: the factory overhead of a company can only be calculated at the end of…

Q: artnership

A: Correct answer :- D 15000

Q: ain the correct answer too.. and why others mismatch?

A: Contra accounts are related to another associated general ledger account . The contra account…

Q: Why is it more accurate to describe the subject matter as CVP analysis rather than as breakeven…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: =) FALSE?

A: The exchange rate refers to the value of the one currency converted into the other currency. The…

Q: Why option A is incorrect?

A: revenue is generated by the business whenever goods or services are sold by the business.this leads…

Q: Which of the following is FALSE regarding advantages and disadvantages of the SML or CAPM?

A: The following statements are true: The model relies on the past to predict the future, which is not…

Q: Should VAS be completely replaced by IFRS? Why/ Why not?

A: IFRS stands for International Financial Standards where as VAS stands for Vietnamese Accounting…

Q: What are the Differences in Maturities?

A: Maturities in the context of the bond mean that bonds are issued for a specific period of time. It…

Q: Which of the following statements is not correct?

A: Leave monetization is actually the leave encashment which means the if there is any earned leaves…

Q: WHAT IF THE CORRECT ANSWER IN NOT IN THE CHOICES

A: The answer calculated is correct. However one more answer can be calculated. 1. Loan payable,…

Q: What is the meaning of incoterms

A: International chamber of commerce is the supervisor of international trading, and try to provide…

Q: What is hedging?

A: SOLUTION:- Hedging refers to shielding of investments. A hedge is an investment method which aims…

Q: Part a and b are wrong ?

A: Depreciation - It is the reduction in the value of fixed asset due to normal wear and tear and…

Q: Which answer is correct and why?

A: Under average cost method, average cost per unit is calculated as: = Total cost of opening inventory…

Q: What is Projected Misstatement?

Q: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: What is counterbalancing?

A: Errors: The comparability and consistency of the financial statements decreases when a company…

Q: According to our authors, what is a misstatement? Provide examples.

A: Misstatement: A remark that is not accurate or the provision of erroneous information is referred to…

Q: Which of the following is FALSE with respec Multiple Choice

A: On the death of an individual, tax returns of the deceased are filed by his legal representative or…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: Which of the following statements is false?

A: Sinc as there are multiple questions are given, so as per answering guideline we do only first one.

Q: Is this correct

A: Amounts are transferred or recorded into respective ledger accounts is the activity which are…

Q: Which of the following is not considered to be an analytical procedure?

A: Answer: Comparisons of financial statements accounts with source documents

Q: Which statement is false?

A: Corporate Bonds: These are bonds issued by the corporation for raising capital. These are…

Q: What differential analysis and why would we use it?

A: Decision making is the process of taking the decisions based on the costs and different kind of…

Q: What is an uncorrected misstatement?

A: Auditing: Auditing refers to an independent examination of financial information of any…

Q: What is Roll’s critique of CAPM tests?

A: Capital asset pricing model is a model that is used to estimate the expected return on an asset. In…

Q: What is the decision rule for ARR?

A: Accounting rate of return refers to rate of profit earned on an investment. The ARR is computed by…

Q: What is underpricing? Why is it used? What evidence do we have to support the belief that…

A: Underpricing is a common term used in Initial public offering of shares of a private company which…

Q: Which of the following is not an example of external variable?

A: Option a

Q: Which of the following is NOT a characteristic of effective information? a. relevance b. accuracy c.…

Q: Why are the realization and matching principles important? Only the importance

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: Which of the following statements is false

A: A Bondholder gets a coupon amount calculated at a rate, on the face value. And at the end of…

Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

Which of the following is incorrect? *
Financial statements are a summary of voluminous documents, events, and
transactions of a business unit
O Similar and closely related items should be under appropriate caption or section
Information must be arranged in a meaningful manner and in accordance with
accepted accounting practices
O All of the above
O Accounting as a language has a vocabulary of its own
O None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Which one of the following statements is false? O A. Management accounting reports tend to be specific. O B. Management accounting reports are produced as often as required. O C. Management accounting reports are subjected to the principles and practices of GAAP. O D. Management accounting reports are not required by law.
Which of the following is not an objective of the conceptual framework? O a. Provides guidance for transactions not addressed in existing accounting standards O b. Enables implementation of one universal set of accounting standards O c. Enables consistency of qualitative characteristics in financial reports O d. Addresses the common needs of users of financial reports
Management accounting information can be disclosed to outsiders O a . False O b . True
Management reports: Multiple Choice Must follow a set of rules specified by Generally Accepted Accounting Principles Must follow the rules specified by the Internal Revenue Service Must follow the rules specified by vendors Do not have to follow a specified set of rules
Internal users of accounting information would not include _______________________. managers employees creditors officers
Financial accounting data prepared in accordance with GAAP. But management accounting don’t follow any rules?
The first step in solving an ethical dilemma is to identify the alternatives. weigh the impact of each alternative on various stakeholders. O recognize an ethical situation and the ethical issues involved. O identify and analyze the principal elements in the situation.
TRUE-FALSE STATEMENTS 1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.
How does the concept of consistency aid in the analysis of financial statements? Why type of accounting disclosure is required if this concept is not applied? Answer:
Which of the following is not a fundamental quality of useful accounting information? Group of answer choices Faithful representation. Relevance. Faithful representation and Relevance. Materiality
Which of the following is not a major challenge facing the accounting profession? a. Nonfinancial measurements. b. Timeliness. c. Accounting for hard assets. d. Forward-looking information.
both financial and management accounting rely exclusively on gaap for reporting true false