Discuss the revenue recognition principle and its significance in financial accounting. What factors must be considered when determining when and how much revenue to recognize?

Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.

What is the purpose of the Income Summary account? How does it relate to the revenue and expense accounts?

Financial

How does the concept of prudence relate to accounting estimates? Explain.

Which principle states that financial statements should be based on verifiable or factual information? a) Revenue Recognition Principle b) Objectivity Principle e) Matching Principle d) Consistency Principle

What are the two essential characteristics of usefulfinancial information? What other characteristics enhancethe usefulness of financial information?

For which classification of users are financial statements prepared?  What characteristic of these users makes the development of generally accepted accounting principles necessary?

Ans

What is the definition of a conceptual framework for financial reporting and discuss its role in accounting? identify and evaluate the main issues likely to be addressed by a  conceptual framework.