b DONJ C d e Support your evaluation with reference to relevant accounting concepts, principle procedure and where appropriate an example. Internal controls lead to barriers in smooth workflow of an organisation. Sole proprietorship is the best form of organisation. A business with high cash balance must be profitable Journal and ledger duplicate each other and serve as a substitute of each other. Closing entries are a substitute for adjusting entries.

b DONJ C d e Support your evaluation with reference to relevant accounting concepts, principle procedure and where appropriate an example. Internal controls lead to barriers in smooth workflow of an organisation. Sole proprietorship is the best form of organisation. A business with high cash balance must be profitable Journal and ledger duplicate each other and serve as a substitute of each other. Closing entries are a substitute for adjusting entries.

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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Financial statement users assess a business liquidity and solvency to see whether a business is generating enough cash to pay its debts True False
1.What are the impact of issues in management accounting practices on the company and stakeholder? 2. Elaborate some suggestions to avoid the recurrence of the issues in management accounting practices.
MULTIPLE CHOICE: 1. These users need accounting information in evaluating the stability of the business in so far as their job security, future remuneration, and career growth and opportunities are concerned. A. Employees B. Creditors C. Auditors D. Regulatory authorities 2. All of the following describe accounting describe accounting, except A. A service activity B. An information system C. A universal language of business D. An exact science rather than an art.
Which of the following is correct criticism on the positive accounting theory? O a. It gives prescriptions for accounting practice of the company. O b. It misleads the stock market by manipulating the earnings. O c Its earnings numbers prepared according to a single basis. O d. It says something about good or bad accounting policy of the company.
Consider the following statements. For each one of them state whether the statement is true or false and provide a brief explanation to support your answer. a) Financial accounting is targeted at external users while management accounting focuses on internal users. b) The trial balance is part of a company’s financial statements. c) Bank loans are always non-current liabilities. d) In accounting, revenues are recognised whenever there is a cash transfer. e) As understandability is one of the key characteristics of accounting according to the IASB conceptual framework, transactions that are too difficult should not be recognised in the accounts.
What accounts are considered temporary? Describe the process to close these temporary accounts? list the steps in the accounting cycle and describe the importance of each step ? What is liquidity? What is solvency? How are these evaluated in a business ?
True or False: Financial accounting primarily serves the external users of the business, such as management, employees, and owners, who use financial accounting information to make decisions. Select one: True O False
From a financial accounting perspective, the main purposes of a system of internal control are to improve the accuracy and reliability of accounting information and to safeguard assets. True or False True False G + 100% O
Options are: General Accounting principle Revenue recongnition principle Full disclosure principle Buisnmess entity assumption Going concern assumption
Financial accounting shows the result of the collective activities of the business. Select one: O True False
1. What are interesting facts/ fun facts about management accounting practices? 2. Explain one example management accounting dishonest practices that talked a around the whole?
In accounting it’s important to understand that there may be events that occur that are not business transactions that affects the accounting equation. Remember that the expand accounting equation is: Asset=Liabilities +owner’s Equity +Revenue-Expenses. Please be sure that you provide this transaction in general journal format. Additionally give us an example of an event that is not an accounting transaction .