What is meant by GAAP? Why should companies follow GAAP in reporting to external users?

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: A summary of the company’s significant accounting policies is a required disclosure. Why is this…

A: Disclosure of accounting policies: Disclosure of accounting policies means disclosing the accounting…

Q: When making business dec rarious sources of informa inancial statements. A comparison of the infor

A: Financial statements reflect various reports, and documents of a company that reflects its overall…

Q: what recent development in FP&A, if any, can significantly help companies deal with a black swan…

A: The answer for the theory question on the development in FP&A that helps companies in dealing…

Q: Describe a nonmanufacturing business that could benefit from the use of standards. Also, explain how…

A:

Q: Explain how general controls impact transaction integrity and the financial reporting process.

A:

Q: Give an example of how financial statements can be used internally by themanagers of a company.

A: Answer: Financing statements help companies to understand the financial health and are used for…

Q: why there is material uncertainty in the company?

A: There are several problems which are faced by the companies for both internal sources and external…

Q: When is revenue recognized by service provider? By a merchandiser? By a manufacturer? Give examples…

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

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: How do companies use information from their accounting systems and statements?

A: Accounting systems and statements are often used to support management decisions. An income…

Q: quality of accounting standards?

A: Accounting standards determine thee accounting information must have relevance, must be reliable and…

Q: How might differences in presentation of comparative data under GAAP and IFRS affect adoption of…

A:

Q: What is meant by GAAP? Why should all companies follow GAAP in reporting to external users?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

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: What is the purpose of determining the BEP? How does a company use this in its daily activities?…

A: Breakeven point analysis is a tool used to determine when a business will be able to cover all its…

Q: How does accounting provide important data to a. Internal users b. External users

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: ng information?

A: Concept: Information contains in the financial statements is said as free from bias. It reflects a…

Q: explain appropriate analyst adjustments to a company’s fi nancial statements to facilitatecomparison…

A: Definition: Common size financial statements: These are the financial statements in which all the…

Q: Using an imaginary company draft a conflict of interest policy for the entire organization

A: answer A conflict of interest policy is used to draft procedure for employees when a possible…

Q: Why accounting information elements that may affect by stakeholders

A: Accounting is the process of recording, classifying and summarizing accounting information in such a…

Q: Why is it important for a company to operate cross-functionally?

A: Solution- Importance of cross-functional:  1-It is important for a company to operate…

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: What does this mean for a company?

A: Current ratio is the ratio that measures a company's ability to pay its short term debt obligations…

Q: on

A: Yes, cultural influences are likely to have an impact on accounting measurement or disclosure…

Q: Discuss the concept of exposure and explain why firms may tolerate some exposure.

A:

Q: W

A: According to AICPA, "accounting is an art of recording, classifying, summarizing in a significant…

Q: Identify the following users of accounting information as either an (a) external or (b) internal…

A: Internal users: Internal users of the financial statement are the inside individuals or the members…

Q: People with an indirect interest in a business would use report based on GAAP. TRUE or FALSE?

A: The persons including individuals and institutions have either direct or indirect interest in the…

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: Explain how an IT environment affects the firm’s obligation to maintain adequate accounting records.

A: Solution- The IT  Software helps to record even the complex transactions with accurate calculations…

Q: What is the desired benefit from revising an accounting standard?

A: Financial Accounting Standards Board:   It is commonly known as FASB. It is a private, non-profit…

Q: s that influence the adoption of computarised ac

A: Using computerized accounting systems, you may set up revenue and expenditure accounts for things…

Q: Describe a nonmanufacturing business that could benefit from the use of standards. Additionally,…

A: Standard is nothing but a parameter for any process which is used to compare actual results with…

Q: How might firms use information to evaluate business operations?

A: Everything which keeps a business running and earning money is referred to as business operations.…

Q: What is meant by fundamental analysis? What type of information is disclosed in fundamental analysis…

A: Fundamental analysis is the establishment of the fair market value of the company's stock. This is…

Q: what are the accounting standards codification and how companies apply them to their activities?

A: Accounting standard: It is a set of basic rules and principles which is set by the Financial…

Q: What control system and subsidiary accounts should be included in Ermler & Trump’s manual accounting…

A: Control system and subsidiary accounts that should be included in Ermler & Trump’s manual…

Q: What is the main goal for accounting rules in the UnitedStates and around the world? What…

A: The main goal of GAAP and IFRS is to guarantee that the companies prepare financial information must…

Q: What does GAAP mean? Why should businesses adhere to GAAP when reporting to external stakeholders?

A: The accounting is a process to identify, classify and record the transactions of the business and to…

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: Should public companies be allowed to publish any non-GAAP performancemetrics? Why or why not?

A: Non-GAAP reports the norm and cause changed on a case by case basis to additional precisely reflect…

Q: IFRS requires companies to use which method for reporting changes in accounting policies? a.…

A: Generally, no changes in accounting estimates are done as it affects the comparability of the…