It’s not easy sometimes to distinguish between a change in principle and a change in estimate. In these cases, how should the change be accounted for?

Q: Rates of returns on annuities cannot be calculated with a formula. True False

A: Rate of return refers to the return earned by the investors over the investment ampunt which is…

Q: What is the effect of a Significant Deficiency? What is it?

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: In what situation would LIFO not provide a better match of revenues and expense

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: Why does balance of payments contain an account called statistical discrepancy?

A: The equilibrium of installments (BOP), otherwise referred to as equilibrium of worldwide…

Q: A critical assumption of the exploratory factor analysis (EFA) is that it is only appropriate for…

A: Definition: Exploratory Factor Analysis (EFA): It is a statistical approach to determine the…

Q: Why does FASB like the retrospective approach? Does it always have to be used?

A: The FASB stands for the Financial Accounting Standards Board. It is a non-profit organization that…

Q: e main hindrances in valuation estimates in busiiness valuation?

A: Introduction Knowing how much an asset is worth and what factors influence its value is critical for…

Q: The Current Ratio Although the current ratio can be useful, what does it not disclose or not take…

A: Accounting Ratios are financial ratios through which a company can analyze its performance in terms…

Q: How do you think the miss statement of fines will impact the important statement and balance sheet.

A: Given: The impact on income statement and balance sheet due to misstatements of funds.

Q: Why is the declining-balance method most widely used?

A: Double-declining-balance method: The depreciation method which assumes that the consumption of…

Q: is profile measurement and analysis? What are the limitations of this approach?

A:

Q: The use of the word “prior” is a key indicator that information is nonrelevant to a current…

A: The use of the word "prior" is not a key indicator to know that information is non-relevant to a…

Q: What procedures should be performed to determine the adequacy of the allowance for doubtfulaccounts?

A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account…

Q: Why is Decpreciaiton a Process of alloacation and not valuation?

A: Depreciation is an expense which shows the decrease in the value of depreciable assets due to its…

Q: So why would we not use standard deduction?

A: Standard deduction is the term which is used in the accounting and it is the portion of income that…

Q: t more difficult to maintain a short position than a long position. True or false? Explain your ans

A: There are two methods in the stock market one is to go long in the market and other is you go short…

Q: The definition of provision in uses the term ‘probable’. How would you interpret ‘probable’? What…

A: Provisions are shown on the liability side of the balance sheet.

Q: g balance method of C

A: The formula of declining balance method as, Depreciation per annum as, = (Net Book Value - Residual…

Q: explain why the author's assessment of the appropriateness of the going concern assumptions is so…

A: Going Concern Assumption- As per the going concern assumption business will continue its…

Q: Would the above decision change if they applied the IRR method? When do the two methods give…

A: Data given:   Scenario A Scenario B Year Free Cash Flow ($) Free Cash Flow ($) 0 -87000…

Q: How does accounting for permanent differences less complex than is accounting for temporary…

A: Temporary Difference:   A temporary difference is the difference of an income recognized under the…

Q: When completing a differential analysis, when are the differences shown as positive amounts? As…

A: In differential analysis , two alternatives are compared by taking first alternative as base and…

Q: An information is called as correct if it is. a. Misleading b. Free from error c. Irrelevant d. Not…

A: An information is called as correct if it is not Misleading ,  Free from error , relevant and…

Q: If the trial balance is balanced, are we certain that there are no errors in it? How so?

A: Trial balance is the statement which is prepared by an entity to check if the debits in the books…

Q: What is the monetary threshold value, when a Statement of Advice (SOA) may be replaced by a Record…

A: Statement of advice is the way by which one can communicate his advice in relation to investment to…

Q: An inaccurate estimate of asset needs can have serious consequences. Explain how?

A: Estimates of assets:  Estimate of assets is the estimated worth of assets of original worth of…

Q: What is the meaning of “statistically significant” in relation to the null hypothesis?

A: Null hyptohesis is the assumption of no effect or no relationship between variables. The Null…

Q: What are the disadvantages and advantages of Analysis at the account level technique

A: Analysis at the account level: It is the method of accounting where the financial transaction's…

Q: Does the MM theory appear to be correct according to either empirical research or observations…

A: The question is based on the concept of Modigliani Miller (MM) approach of capital structure and…

Q: Give differences between Revaluation account and Realisation account.

A: Revaluation account: The revaluation account is a nominal account opened to assess the values of the…

Q: 5) Is the cost method of valuation always reliable? What can be done to make the valuations…

A: The cost approach is one of the methods of real estate valuation by which the price a buyer should…

Q: In what circumstances is the compressed adjustedpresent value (APV) model useful, and how wouldit be…

A: The question is based on the concept of adjusted present value (APV). APV uses net present value…

Q: The discount approach, reinvestment approach and combined approach were all incorrect.

A: Formula of MIRR: MIRR =  n - 1where n = number of yearsMIRR discounting approach : Discount approach…