S1: Start-up costs incurred by a branch in the initial months of operations are appropriately deferred and amortized in subsequent profitable accounting periods. S2: Sperate financial statements of home office and branch do not meet the needs of investors, creditors, or other outside users of financial statements. A. Only S1 is correct. B. Both statements are incorrect. C. Both statements are correct. D. Only S2 is correct.

Which of the following statements is false? O a. Managerial accounting does not need to conform to GAAP. O b. Managerial accounting sometimes relies on past information. Oc. There is no overlap between financial and managerial accounting. O d. Financial accounting must conform to GAAP.

How can adjustments to the standardized financial statements be made in order to undo these distortions?   Accounting distortions:                  Accounting distortions refer to the concept of any sort of difference between the information or evaluation made regarding the financial statement than the real-time data of the business. The most common types of accounting distortions are as follows: Data entry errors: It occurs when there are mistakes or misstatements in the data entry system of the company. For example, entering items in the wrong account, transposing numbers, leaving out or adding a digit or a decimal place, treating expenses as income, or vice versa. The error of omission: It involves an error that occurs when one fails or forgets to make any entry. For example, failure to record any notes received. The error of commission: It involves mishandling of any entry by recording it in the wrong books or with the wrong place The error of transposition: It is the error of…

Multiple choice: 1. Which of the following statements is incorrect? A. Accounting education is the branch of accounting that deals with the teaching of accounting and related subjects in order to produce competent and responsible business professionals. B.. Erroneous financial statements can lead to bad financial decisions. C. Internal users of financial information refer to the entity’s management personnel. D. Tax accounting refers to the branch of accounting that deals with tax computations, filing of tax returns, and tax planning. 2. Transactions and other events are recorded in the periods in which they occur, not when they affect cash. A. Going concern B. Accrual basis C. Reporting period D. Consistency 2. Under this concept, a business is not expected to end its operations in the near term. A. Separate entity concept B. Going concern C. Stable monetary unit D. Materiality