TAARE ZAMEENPAR Company reported the following changes in the account balances fo vear December 31 2021:

Q: Explain principal (agency relationships)

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal approves agent to…

Q: An objective of financial reporting is

A: Financial reporting uses financial statements to disclose financial data that indicates the…

Q: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: What is an asset and liability per the IASB framework definition for the preparation and…

A: Financial statement includes: 1) Balance sheet  2) Income statement 3) Cash flow statement  4)…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: What are the quality information with regards to financial reporting?

A: Financial reporting is to communicate the financial position and its soundness to the shareholders,…

Q: Explain the revenue recognition principle.

A: Accounting principle:

Q: What is the difference between a liability and an expense in accounting?

A: A company's future debt or obligation to a third party is known as a liability. This can include…

Q: Describe the steps to apply Core Revenue Recognition Principle.

A: Revenue recognition principle: Revenue recognition principle refers to the revenue that should be…

Q: Describe the revenue and collection cycle,including typical source documents.

A: Introduction: Income statement: Income statement is the financial statement of the company that is…

Q: Which fundamental characteristic of GAAP requires that all information useful for decision making is…

A: Generally Accepted Accounting Principles: They are commonly known as GAAP. It is a collection of…

Q: IASB standards and the Conceptual Framework for Financial Reporting

A: IASB standards and Conceptual Framework for Financial Reporting provide guidance to do accounting in…

Q: Discuss the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

Q: Demonstrate the appropriate accounting treatment for contingencies, includingunasserted claims and…

A: Contingencies refer to a situation that occurs in the accounting period for which the outcome is not…

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

Q: financial plan which serves as a framework of accounts A. Appropriation act B. Budget C.…

A: Introduction:- A financial plan is the heart of any business. It gives clear financial picture of…

Q: describe general principles of revenue recognition and accrual accounting, specifi c revenue…

A: According to IFRS, a company should recognize revenue from the sale of goods whenever the following…

Q: Describe the Fundamental Issues Related to Recognizing Revenue.

A: Revenue Recognition: Revenue recognition refers to the principle which tells about the conditions…

Q: Explain how the conceptual definition of assets and liabilities and recognition criteria improve…

A: Assets are the resources that are controlled by the entity and from which economic benefits flows to…

Q: Describe the accounting treatment of anticipated uncollectible accountsreceivable.

A: As per the matching principle of accounting, all expenses relating to the revenues must be accounted…

Q: State the reason Fundamental Assumptions are always required to be disclosed in the financial…

A: Fundamental assumptions states the accounting concepts which have been followed as well as…

Q: Outline the accounting procedures involved in applyingthe operating method by a lessor.

A:

Q: Understand the disclosures required for revenue recognition, accounts receivable,contract assets,…

A: Much disclosure is required for revenue recognition. For example, a seller recognises contract…

Q: Understand the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

Q: Reccomendation

A: Ans. The major environmental factors that effects accounting system are : i. The economic…

Q: discuss the ‘primary users’ of general-purpose financial reports?

A: General purpose financial reports means the financial statement including trading and profit and…