When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) P 80,000 Land and Building (fair value, P240,000) Goodwill (fair value, 0) 200,000 40,000 Total Assets P320,000 Accounts Payable P160,000 Mortgage Payable (secured by land & building) Ordinary share Accumulated profits 200,000 100,000 (140,000) Total Liabilities and Equity P320,000 What percentage of their claims are the unsecured creditors likely to get? 100% 43.75% 56.25% 50.00%

Q: hich of the following is not a fundamental quality of useful accounting information? Group of

A: Materiality is crucial in determining what information to include, It is not one of the core…

Q: Describe the reasons why financial accounting is useful?

A: Financial accounting is a specific branch of accounting involving a process of recording,…

Q: Describe the conceptual framework of accounting principles.

A: The conceptual framework can be defined as a system of ideas and objectives that lead to the…

Q: Which of the following are considered secondary characteristics of accounting information? a.…

A: Accounting information is used by various users for different purposes. The primary characteristics…

Q: Critically comment on Positive Accounting Theory (PAT) (

A: Accounting is a process that involves the recording of the transactions of financial nature.

Q: Explain the differences between a positive theory of accounting and a normative theory of…

A: The question is based on the concept of Business Accounting.

Q: How would you approach the implementation and application of new accounting standards?

A: INTRODUCTION: Accounting standards are important in the financial reporting of a corporation.…

Q: How does the concept of prudence relate to accounting estimates? Explain.

A: Prudence in accounting refers to using care and cautious judgment while creating accounting…

Q: Support for Politicization of rule making for accounting standards

A: The politicization of accounting rulemaking should not be viewed in a narrow sense. As accounting…

Q: quality of accounting standards?

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

Q: Which of the following are considered secondary characteristics of accounting information? a.…

A: Secondary Qualitative Characteristics of accounting information is how useful the information is.…

Q: Define strategy in accounting?

A: Strategic management accounting refers to the managing and analyzing finances of company which help…

Q: What are the two of the qualitative characteristics of accounting information that contribute to its…

A:

Q: Explain how to develop financial accounting and reporting standards.

A: The financial accounting and reporting standards are created by IASB

Q: What are the different assumptions of Accounting principles?

A: Accounting assumptions provide a fundamental base and structure to record business transactions.The…