this multiple choice questions from ACCOUNTING PRINCIPLES I

Q: Distinct features between management accounting and financial accounting

A: The objective of this question is to distinguish between management accounting and financial…

Q: What are the different approaches to income measurement in accounting theory, and what are the…

A: Income measurement in accounting theory refers to the process of determining and quantifying the…

Q: Explain the political cost hypothesis of Positive Accounting Theory.

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: Accounting risk: types, explanations and examples

A: Accounting risk refers to the potential for errors, inaccuracies, or misstatements in an…

Q: Discuss the differences between financial and management accounting and support your arguments with…

A: We know that financial accounting and management accounting are two branches of accounting.…

Q: Describe the accounting applications of present value techniques.

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: what is the contrast the basic financial statements

A: Financial statements are written records that convey the business activities and therefore the…

Q: An objective of financial reporting is

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

Q: What can be understood from the term Accounting diversity?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Compute accounting rate of return and explain its use.

A: Accounting rate of return in simple terms is an average rate of return of return from an investment.…

Q: Understand the uses and limitations of an income statement.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Explain the importance of perspective analysis to financial statement analysis?

A: The process of evaluating a company's performance or value using its balance sheet, income…

Q: What is management accounting?

A: Financial accounting: Financial accounting is different from managerial accounting. Financial…

Q: Differentiate Financial Reporting and Management Reporting. How are they related?

A: Financial report shows the financial results of the company which has already achieved. Management…

Q: what type of decision-making process is supported by management accounting

A: Type of decision-making process is supported by management accounting will be explained:

Q: Explain whether the cost of accounting systems primarily support internal or external reporting

A: Cost Accounting System: Cost accounting system can be defined as a framework designed by the…

Q: How would you describe the accounting profit?

A: The answer is about the accounting profit:

Q: What are the functions of Management Accounting? Explain

A: Management accounting is the one which helps the managers within the company to make decisions and…

Q: Define a comparative balance sheet?

A: A comparative balance sheet presents the information about the Assets, liabilities and Equity side…

Q: Definition of income measurement?

A: The income statement is one of the financial statement of the business.

Q: The fundamental & enhancing qualitative characteristics of financial information?

A: Characteristics of Financial Information: It refers to those characteristics which financial…

Q: What concepts of mathematics are important in the field of accountancy?

A: Accounting: It is the process of recording, classifying, summarizing all transactions of a business…

Q: Examine the advantages and disadvantages of interpretative accounting theory

A: Introduction : Interpretive Accounting theory has developed and contributed significantly to our…

Q: What are the differences between EVA and net profit in accounting

A: Introduction : Businesses may assess investment prospects using economic value-added and accounting…

Q: What is the benefits of subject accounting in our future? And what is the importance of the subject…

A: Managers, owners, and other stakeholders can use final accounts to get a sense of a company's…

Q: Discuss why accounting is or is not a social science

A: Accounting is a process of recording the day to day transactions of the company, processing it, and…

Q: what kind of decision that management accounting is used for?

A: According to Cost and Management Accounts, London, "Management Accounting is concerned with the…

Q: What is income approach measurement?

A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…

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: Accountancy concepts should be explained.

A: Accounting fundamentals: Accounting principles refer to the conventions or standards that must be…

Q: what makes accounting a valueable discipline?

A: Accounting, often regarded as the language of business, holds a position of paramount importance in…

Q: Accounting and Accounting theory are deeply rooted in  general systems theory. Discuss

A: A framework of collecting and organizing a set of elements to achieve a common objective is known as…

Q: Explain in detail the difference between accounting value and market value.

A: The objective of this question is to understand the difference between accounting value and market…

Q: Define financial system?

A: Financial System is a set of institutions which includes banks, insurance companies, and stock…

Q: outline and describe the main components of income statement that analysts should consider in their…

A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is