Answered: qualitative characteristics of useful…

Business

Accounting

qualitative characteristics of useful financial information

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Referring to the following data of the Omani Company, that extracted from the balance sheet at…

A: Accounting ratios, an important sub-set of financial ratios, are a group of metrics used to measure…

Q: 2022, Draper Company discovered errors made in 2019-2021, its first thre years of operation 2021…

A: Calculations of Restated 2021 Net Income. Hence, Restated 2021 Net Income is $23,350. Working…

Q: During 2020, Campbell Company entered into the following transactions. Purchased equipment for…

A: The accounting equation refers to the equation of the balance sheet. It is based on the method of…

Q: Y.Co reported the following selected balances on its financial statements for each of the three…

A: Net Unrealized loss means the decrease in the value of the securities not sold yet but which are…

Q: Prepare a multi-step statement of fiancial performance for 2020 showing expenses by function. Ignore…

A: Statement of Financial Performance consists of Balance Sheet, Income Statement and Cash Flow…

Q: A shareholder of a certain company is concerned that the company has recorded a reduced level of…

A: Ratio Analysis - Ratios is the method of analyzing company's financial statements. By using ratio…

Q: Preparing a statement of retained earnings Kelly May Bakery, Inc. reported a prior-period adjustment…

A: Concept:

Q: 1. What is the total effect of the errors on the 2020 net income? a. Overstated by P80,400b.…

A: Retained earnings Retained earnings are the total amount of a company's profits that are set aside…

Q: ints) During 2021, Querido Co. reported net income of $337,000. The company also reported the…

A: Cash flow from operation is a part of the cash flow statement that shows the net cash flow from the…

Q: Compute for the following: a. Accumulated profit as of December 31, 2018 and 2020 b. Profit (Loss)…

A: We are given the unadjusted balance of accumulated profit of Brin Inc. from 2018 to 2020. Based on…

Q: . On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance:…

A: The income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: would represent an example of what type of analysis:

A: Financial statements: It refers to the end reports prepared by n organization to report the…

Q: Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in…

A: Earnings per share- Earning per share calculate the share of profit that each stock get, at the time…

Q: Rexon Corp in the business of wires and it has reported net income of RM225,000 for 2019. It also…

A: Cash flow statement forms part of financial statements and used to find the amount of cash earned…

Q: Your examination of the financial statements of Water Corporation revealed the following errors were…

A: Formula for calculating working capital:

Q: Prepare the statement of retained earnings for 2019

A: Retained Earnings as name suggest, are the profits earned by the Business Entity and are retained…

Q: Explain how the transactions below should be treated in the financial statements of Gidimadjor…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation.…

A: Working capital represents the ability of the company to manage its day to day business expenses. It…

Q: The Sheffield Company had the following assets and liabilities on the dates indicated. December 31…

A: Step 1: Owner's equity, ending balances Owner's equity, ending balance = Total Assets - Total…

Q: covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not…

A: Working capital, also known as net working capital (NWC), is the difference between a company's…

Q: Which of the following would most likely signal that a company may be using aggressiveaccrual…

A: The company always tries to manage earnings by deferring the expenses to the later periods to show a…

Q: The profit or loss section of the statement of comprehensive income of CPA Company for the year…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Shareholders of Hartley Corp are concerned that the company has recorded a reduced level of profits…

A: 1. Vertical Analysis - Total Assets and Total Liabilities and Stockholder's Equity will be…

Q: BNSF has a retained earnings balance of $430,000 on January 1, 2023. During the year, it reported…

A: Statement of retained earnings is one of the financial statements that shows change in amount of…

Q: In good form, prepare a multiple-step income statement for 2023. Assume a 20% income tax rate and…

A: Multi Step Income Statement An financial statements with multiple steps lists a company's income,…

Q: Elliott Corp. failed to record accrued salaries for 2016,$2,000; 2017, $2,100; and 2018, $3,900.…

A: Accounting error:Accounting errors can be defined as omission of the fundamental accounting…

Q: Suppose that Laramie Company’s adjusted trial balance ignored the following information. For each…

A: When dividends are declared by a company, the journal entry would include debit to Retained earnings…

Q: Nabil Biscuits interested to maintain the current ratio is 1.5 for the year 2020. The company wishes…

A: Current ratio is the Ratio of current asset to current liabilities. To increase current ratio there…

Q: blockd/2019/1 Is it possible to pay dividends even though a company has not generated a profit for…

A: When a firm distributes a portion of its profits and reserves and surplus to its owners and…

Q: Bonita Corporation reported the following for 2020: net sales $1,207,600, cost of goods sold…

A: INCOME STATEMENT Income Statement is one of the Important Financial Statement of the Company. Income…

Q: 12/31/2020 12/31/2021 nventory 150,000 over 100,000 under eciation 85,000 under surance premium of…

A: Net income refers to the total sum of money earned by an individual or an entity in a desired period…

Q: Consider the following financial statements (in millions of $). In 2016, the company did not pay any…

A: Retained Earning - It is a portion of company's income / profit left over the business after making…

Q: corrected profit

A: Unearned Revenue represents the amount of advances received from the customers on the account of…

Q: The case below relates to IAS 10. Indicate whether they are adjusting and non-adjusting events and…

A: The organization makes financial statements for the specific date. The company should record the…

Q: uses its assets less efficiently and effectively than competitors in its industry in 2019. indicates…

A: Ratio analysis used identify the business performance of the company.It is used to measure financial…

Q: At the end of 2022, Shah Corp. underestimated its annual bad debts expense by $50,000. What is the…

A: In order to increase the sales revenue, the business entities sold their goods on the credit basis.…

Q: The following information is related to Whispering Company for 2025. Retained earnings balance,…

A: An income statement is prepared by the business entities so as to know how much amount of gross…

Question

Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR.0.650 in 2019. However, the company forgot to disclose this information in its annual report.

- which types of suitable qualitative characteristics of useful financial information?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Qualitative characteristics of useful financial information

VIEW

Comparabilty

VIEW

Answer

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this accounting change? During 2021, Tricky Company decided to change from FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were as follows: FIFO January 1 1,420,000 1,580,000 Weighted Average 1,540,000 1,660,000 December 31 Income tax rate is 35%. In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this accounting change? Your answer
The company's return on assets for the year ending December 31, 2019, is not exactly matching any of the options provided. However, I will now read back the entire question and provide the closest answer from the options given. A company reported the following financial information: As of December 31, 2018: total assets of $10,000,000 net sales revenue of $6,000,000 Net income of $1,000,000 As of December 31, 2019: total assets of $14,000,000 net sales revenue of $8,000,000 net income of $2,200,000 What was the company's return on assets for the year ending December 31, 2019? 8.33% 14.29% 16.67% 66.67%
Referring to the following data of the Omani Company, that extracted from the balance sheet at 31 12 2019, answer the following questions: - (Note; Write all Equations regarding the questions) 1. The company manager targets to reduce the current ratio in the year (2020) by 33% from the previous year (2019), this requiring to downsize the amount of the total current asset. To what level can the manager reduce the total current asset to achieve this target at (2020)? (Suppose the oth things are fixed) 2. The manager put a plan to reduce the selling period in the (2020) by (16.7%) from the previous year (2019). Calculate the newinventory tumover (Suppose the other things are fixed) Data of 2019 Total Asset Turnover 2 Times Net Fixed Asset 400 (Thousand OMR) Total Liabilities 400 (Thousand OMR) Sales 2000 (Thousand OMR) Quick Ratio 1.5 Times Accounts Receivable 150 (Thousand OMR) Long-term Liabilities 200 (Thousand OMR)
Please answer
i. Use the following simplified 2019 balance sheet to show, in general terms, how an improvement in one of the ratios—say, the DSO—would affect the stock price. For example, if the company could improve its collection procedures and thereby lower the DSO from 38.1 days to 27.8 days, how would that change “ripple through” the financial statements (shown in thousands below) and influence the stock price? Accounts receivable $ 402 Debt $ 965 Other current assets 888 Net fixed assets 361 Equity 686. Total assets $1,651 Total liabilities and equity $1,651 j. Although financial statement analysis can provide useful information about a company’s operations and its financial condition, this type of analysis does have some potential problems and limitations, and it must be used with care and judgment. What are some problems and limitations?
PROBLEM 3: Effects of errors to retained earnings. While preparing the 2019 financial statements, Amber Company discovered computational errors in the 2017 and 2018 depreciation expense. These errors resulted in overstatement of each year's income by P100, 000, net of income tax. The following amounts were reported in the previously issued financial statements: 2017 2018 Retained earnings, January 1 2,000,000 800,000 Retained earnings, December 31 2,800,000 2,800,000 600,000 3,400,000 Net Income The net income for 2019 is correctly reported at P700, 000. Requirement: Compute the correct balance of retained earnings on December 31, 2019.
How much is the net income(loss) for the year?
what is the net effect of the errors in the 2018 net income?
How will this change in GAAP impact GM’s Operating Income? How will investors react to this change?
Question: Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 2021 Below is the list of nominal ledger balances of Tonson Plc at 31 December 2021. Tonson’s financial year end is at 31 December. Nominal ledger closing balances at 31 December 2021 The following information is relevant. 1. Closing inventory at 31 December 2021 is £45,000 On further investigation of the suspense account in the trial balance above, it was discovered that: An expense of £8,250 for legal services had been posted to the suspense account and a cash receipt of £15,750 had been posted to the suspense account. This represented the disposal proceeds from selling equipment, which had been purchased on 1 March 2017 at a cost of £48,000. Tonson depreciates non-current assets as follows: buildings at 1 per cent on a straight-line basis plant and equipment at 10 per cent on a straight-line basis motor vehicles at 20 per cent on a reducing balance basis.…
pls answer thanks.
The company’s accountant has indicated that there was a significant decline in Insignia’s return on equity. You are require to compute the company’s Return on Equity using Du Pont Identity for 2019 and 2020, to ascertain the root cause of the decline.