A summary of the company’s significant accounting policies is a required disclosure. Why is this disclosureimportant to external financial statement users?

Q: For which classification of users are financial statements prepared?  What characteristic of these…

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

Q: What is concern of external users of accounting information in GAAP?

A: Accounting information includes all financial statements like Balance Sheet, Income statements and…

Q: describe the importance of fi nancial statement notes and supplementary information—including…

A: The importance of financial statement notes and supplementary information thatincluding disclosures…

Q: Explain in your own words what generally accepted accounting principles (GAAP) are.

A: GAAP are the rules , standard , guidelines and procedures according to which accounts are prepared.…

Q: Explain why the accounting standards are necessary in financial reporting.

A: Accounting Standards are the rules and guidelines that are used for preparation of financial…

Q: What is the rationale behind the Financial Accounting Standards Board's classification of accounting…

A: Introduction

Q: Evaluate the attributes of full disclosure in financial reporting, including the accounting…

A: FULL DISCLOSURE PRINCIPLE -  The full disclosure principle states that the information which is…

Q: Explain the importance of financial accounting information for external parties—primarilyinvestors…

A: Financial Accounting:-Summarizing of all the transactions that occurred in the business during the…

Q: The primary objective of financial accounting is to provide general purpose financial statements to…

A: FINANCIAL ACCOUNTING IS A METHOD OF DOCUMENTING , SUMMARISING AND REPORTING THE TRANSACTION ARISING…

Q: Which of the following is not an external user of a business’s financial information? Taxing…

A: The financial information of the company is used by many internal & external users for getting…

Q: ‘The accounting concepts and accounting standards are generally referred to as the essence of…

A: INTRODUCTION  Financial Accounting refers to collecting , summarizing and presentation of the…

Q: Which of the following would be considered a preparation of financial statements engagement?a.…

A: The service in which accountants prepare financial statements of various clients is referred as…

Q: analyze company disclosures of signifi cant accounting policies

A: Accounting principles are the principles that are framed by the Company to carry on the activities…

Q: fundamentals that will guide the development of financial accounting and reporting standards. The…

A: Conceptual Framework in Accounting Conceptual Framework which was proposed by the International…

Q: Accounting estimates are those adopted by an entity in preparing and presenting its financial…

A: Explanation: Accounting estimates is a approximate amount that is used for measurement when there is…

Q: What is the relevance of the Accounting Information System in the present practice of accounting?

A: Accounting Information System: An accounting information system (AIS) is a framework that a company…

Q: Who are the most important consumers of accounting information and why do they need it? What kind of…

A: Here is the Answer

Q: Discuss the importance of accounting standards for the purpose of preparing financial reports.

A: Accounting Standard Accounting Theory

Q: The area of the accounting profession that deals with providing information to meet the needs of the…

A: Introduction:- Basic definitions as follows under:- i) Financial accounting provides information to…

Q: Under what circumstances might it be acceptable for a company preparing IFRS financial statements to…

A:

Q: An item that meets the definition of an accounting element should be given recognition in the…

A: Accounting Elements:- Assets, Liabilities, Equity, Capital, Drawings, Revenue, and Expenses are the…

Q: Accounting includes activities such as identifying, measuring, and communicating financial…

A: Being the language of business, accounting acts as the bridge between the business and the users of…

Q: Financial accounting is the area of accounting aimed at serving __________ by providing them with…

A: Financial accounting helps in preparing financial statements like Statement of Income, balance sheet…

Q: what is the link between compliance with standards and the value of the firm's accounting and…

A: Accounting standards are prepared under the supervision of the Accounting Standard Board. Each and…

Q: When it comes to the contemporary practice of accounting, what is the significance of the Accounting…

A: Here is the Answer

Q: Identify which of the following items are not included as part of general-purpose financial…

A: Financial statements: These are financial reports that helps management in assessing the company's…

Q: Which pronouncements are not issued by the FASB? a. Statements of Financial Accounting Concepts b.…

A: FASB is an accounting standard board, the main purpose of which is to establish the GAAP (Generally…

Q: Shareholders are external user of accounting information . The answer is true or false

A: The objective of the financial statement or accounting information is to provide information about…

Q: What does the full disclosure principle require? O Companies must disclose transactions as part of…

A: The full disclosure principle states that:- financial statements should disclose all events and…

Q: what are the difficulties may users of financial statements face it in using financial or accounting…

A: Accounting disclosure information: It is information that shows expenses and revenues of the…

Q: Which one of the following concepts is an important issue for the Auditors of financial accounts?…

A:

Q: Which pronouncements are not issued by the FASB? O Statements of Financial Accounting Concepts O…

A: FASB is an accounting standard board, the main purpose of which is to establish the GAAP (Generally…

Q: Comment on the statement that what a company’s income statement reveals is interesting, but what it…

A: Income statement: The financial statement which reports revenues and expenses from business…

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: Describe the roles of the following organizations in establishing generally accepted…

A: a. The Financial Accounting standards Board (FASB) is the primary standard-setting body in the…

Q: In general, what is the conceptual framework that underlies accounting principles, and how  does it…

A: A conceptual framework can be defined as a system of ideas and objectives that lead to the creation…

Q: What is meant by the term adequate disclosure, and howdo accountants fulfill this requirement in the…

A:

Q: Why does the Financial Accounting Standards Board define accounting as information systems?

A: A seven-member independent board consisting of accounting professionals who establish and…

Q: Explain the impact of accounting standards suchas GAAP and the Sarbanes-Oxley Act on…

A: After a prolonged period of corporate scandals (e.g., Enron and Worldcom) in the United States from…

Q: What is meant by generally accepted accounting principles,and how do these principles add to the…

A: