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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.

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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• 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
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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. 

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