How is materiality concept applied?

Q: What are the responsibilities of an originator?

A: The originator's responsibilities are: Originator communicates with all borrowers of mortgage loans…

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: A) What is VAT? what is the difference between input and output VAT?

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What is Gordon model?

A: Intrinsic value of a stock is based on the internal information of an organization. That is, market…

Q: what does fichacuristic mean?

A: NOTE: The word "fichacuristic" is a spelling/typo error of the word "futuristic" in Step 2 first…

Q: Define the term materiality concept.

A: Accounting concept:   They are the basic rules and assumptions that forms the base for recording the…

Q: What is the purpose of physical contols

A: Physical controls are basically to safeguard the assets of the entity which are highly valuable. It…

Q: What is internalization?

A: Internalization: It happens when an individual directs an exchange itself, as opposed to sending it…

Q: Explain types of Properties?

A: Tangible Property: This type of properties alludes to a property that can for the most part be…

Q: What is asset

A: Assets are those items that provide value for money and future economic benefit for an organization.…

Q: artnership

A: Correct answer :- D 15000

Q: What is ESOP?

A: It is abbreviated as Employee Stock Ownership Plan is defined as a plan that gives the workers a…

Q: What is MM Proposition I?

A: Modigliani and Miller’s approach is an element of economic theory and it forms the basis for modern…

Q: What’s the AMT, and what is its purpose?

A: The main purpose of AMT is to set a limitation on the tax payers who may be making use of the excess…

Q: What is CAPM? How about APT?

A: CAPM and APT are two common models for pricing used in finance. These are explained below.

Q: What is scalability?

A:

Q: what is the purpose of the conceptual framework?

A: The conceptual framework is comprised of six Financial Accounting Concepts statements that serve as…

Q: What is hedging?

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

Q: What is GAAP and how does it work

A: The accounting is based on various principles that are defined by GAAP or IFRS.

Q: What is EBITDA?

A: EBITDA is a metric which is used to measure the company's profitability. Though there is no legal…

Q: What is lapping?

A: Definition: Lapping: Lapping is an accounting fraud in which an employee steals cash from accounts…

Q: What is a quantity standard?

A: A quantity standard is the amount of materials that should be used in the production of a unit.…

Q: What properties should transfer-pricing systems have?

A:

Q: What is an LBO?

A: Leveraged buyout (LBO): It is another firm's takeover, employing a huge sum of borrowed capital to…

Q: What is consignment

A: Consignment is a form of arrangement between two parties in which one party sends goods to another…

Q: What is a CMO?

A: A collateralize mortgage obligation (CMO) refers to a type of mortgage-backed security that contains…

Q: What are the types of external user?

A: Entity needs to prepare a financial statement for the use of internal and external decisions making.…

Q: What is Agency theory ?

A: Agency theory Agency theory explains the connection between the principal and agent. concerned…

Q: Define the term Force account?

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

Q: Explain title Mechanics’ Liens?

A: Lien is a right of posession of an asset; in case, debts are not discharged by the owner of the…

Q: Explain materiality Principle in detail with example

A: A set of rules and guidelines that is required to be followed by an entity in the process of…

Q: What is view modeling?

A: Definition: View modeling: The modeling technique used for the creation of an individual REA diagram…

Q: What does the concept "substance over form" stand for?  Can you provide me with some examples?

A: Substance over form: It is an accounting concept, which means that the business must record those…

Q: What are some advantages of asset allocation?

A: The advantages of applying asset allocation:   Diversification:  Long-term investing:…

Q: what is stare basis?

A: Stare Decisis is a rule that obligates courts to follow decided cases i.e. it means to stand on…

Q: How is the process of the NPW measure implemented with the decision rule?

A: As an organization expands, it needs to take important decisions that involve immense capital…

Q: Define Materiality.

A: In accounting, materiality refers to the relative size of an amount. Relatively large amounts are…

Q: Distinguish between direct material and indirect material.

A: Direct materials will be materials that are devoured during the creation of an item as either…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.