3. List and briefly discuss as many areas as you can in which an accepted method or technique is conservative, including why it is conservative.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Do #3

• Proprietary theory
• Entity theory (orthodox view)
.Entity theory (unorthodox view)
• Residual equity
ing equity theories:
b. Would any of your answers change if the preferred stock is convertible at any
time at the ratio of 2 preferred shares for 1 share of common stock?
2. Critique A Statement of Basic Accounting Postulates and Principles by the referenced study
group at the University of Illinois (it should be on reserve or otherwise made available
to you). Your critique should cover, but not be restricted to, the following points:
2. How do the definitions of postulates, concepts, and principles differ?
b. Are the examples of postulates, principles, and concepts consistent with their
definitions?
c. Does this set of postulates, principles, and concepts provide a legislative body
with a useful framework for deriving operating rules?
3. List and briefly discuss as many areas as you can in which an accepted method or
technique is conservative, including why it is conservative.
4. A few years ago both Halliburton Corporation, a large construction company, and
its auditor, Arthur Andersen, were chided for allowing Halliburton to book a per-
centage of cost overruns that Halliburton attempted to collect from customers after
projects were completed, but before both agreed settlements with customers and,
of course, collection thereof. The practice of trying to collect cost overruns in the
construction industry is not uncommon. Until 1998, cost overrun collections were
quessing how much
Transcribed Image Text:• Proprietary theory • Entity theory (orthodox view) .Entity theory (unorthodox view) • Residual equity ing equity theories: b. Would any of your answers change if the preferred stock is convertible at any time at the ratio of 2 preferred shares for 1 share of common stock? 2. Critique A Statement of Basic Accounting Postulates and Principles by the referenced study group at the University of Illinois (it should be on reserve or otherwise made available to you). Your critique should cover, but not be restricted to, the following points: 2. How do the definitions of postulates, concepts, and principles differ? b. Are the examples of postulates, principles, and concepts consistent with their definitions? c. Does this set of postulates, principles, and concepts provide a legislative body with a useful framework for deriving operating rules? 3. List and briefly discuss as many areas as you can in which an accepted method or technique is conservative, including why it is conservative. 4. A few years ago both Halliburton Corporation, a large construction company, and its auditor, Arthur Andersen, were chided for allowing Halliburton to book a per- centage of cost overruns that Halliburton attempted to collect from customers after projects were completed, but before both agreed settlements with customers and, of course, collection thereof. The practice of trying to collect cost overruns in the construction industry is not uncommon. Until 1998, cost overrun collections were quessing how much
Expert Solution
Step 1

There are many approach that it possible these possibility can exist in various form that include conservative of aggressive approach of defensive approach. It depend on the type of work and areas of operations which differences nature. 

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Morals and Ethics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education