What is the difference in the accounting cycle of an economic unit that is already operating in relation to an economic unit that starts its activity for the first time?

Q: How does accounting provide useful information about economic activities?

A: Whenever a company wants to make decisions that include money that decision comes under the economic…

Q: How does the time period assumption affect an accountant's analysis of business transactions ?

A: Time period assumption state that business organizations are required to prepare and present their…

Q: Why are accounting principles, once adopted, normally consistently applied over time?

A: Accounting principles are the rules and guidelines that companies must follow when reporting…

Q: What are the principles of accounting according to GAAP?

A: GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles,…

Q: When fresh start accounting is utilized, how are a company’s assets and its liabilities reported?

A: Except for deferred income taxes, all liabilities at the same time reported as future cash payments…

Q: How does a company compute the effect of such changes in accounting principle?

A: Wee first needs to understand the meaning of change of accounting principal. A change in accounting…

Q: why are current liabilites important in accounting

A: Current liabilities are important in accounting because they represent the obligations that an…

Q: How does the expenditure cycle in accounting help an organization manage its expenses and control…

A: Cycles of expenditure are comparable to a company's financial management. It assists the business in…

Q: How does IFRS APPLY TO THE ACCOUNTING CYCLE AND FINANCIAL REPORTING?

A: IFRS - International Financial Reporting Cycle is the standard set by the IASB (International…

Q: What are the Universal Standards in Accounting?

A: Universal standard of accounting is also known as International standard of accounting. The…

Q: Which fundamental characteristic of accounting requires that financial statements are prepared in a…

A: Fundamental characteristics of accounting are the desired qualities in accounting information by the…

Q: what is the interim report of a company?

A: A financial report representing a term of less than a year is known as an interim report. Interim…