this multiple choice questions from ACCOUNTING PRINCIPLES I

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: 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: What is management accounting?

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

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: Examine the advantages and disadvantages of interpretative accounting theory

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

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: 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