? When does the industry specificity principleoverride general accounting practices?a) General rulesindustriesb) Unique sectorapply equally toallcharacteristicsdemandspecialized treatmentc) Standard practices never need modificationd) Industry customs have no accounting impact

Explanation of Industry Specificity Principle: This fundamental accounting principle recognizes that…

Answered: When does the industry specificity…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 10MC: Which of the following statements is incorrect? The practice of management accounting is fairly...

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Which of the following is not about harmonization? Select one: a. Harmonization is a process of increasing the compatibility of accounting practices. b. Harmonization simply implies uniformity. A c. Harmonization is tailored towards breaking the barriers of national differences. d. Harmonization is a process of preparing financial statements.
Accounting Theoretical Question. In developing accounting policies, what weight should be given to industry-specific practices versus general accounting principles? Examine the tension between standardization and specialized reporting needs. Where should accountants draw the line between conformity and customization? How might this balance affect the comparability of financial information across industries?
Identify a limitation to using ratio analysis when examining companies reporting under different accounting systems such as IFRS versus U.S. GAAP.
Why do specialized industry accounting practices develop?
Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.
How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?
?
Which of the following statements is false? a.Financial accounting must conform to GAAP. b.Managerial accounting sometimes relies on past information. c.Managerial accounting does not need to conform to GAAP. d.There is no overlap between financial and managerial accounting.
How do differences in accounting controls and enforcement impact accounting reports prepared across different countries?
Drawing on your background in accounting, can you think of any accounting procedure differences that might make it difficult to compare the relative performance of different firms?
Is there an indirect consequence to a change in accounting policy? Introduce the methodology for reporting the indirect consequences of a change in accounting policy under International Financial Reporting Standards (IFRS).
What is an externality, and why do financial accounting practices typically ignore externalities?

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When does the industry specificity principle override general accounting practices? a) General rules industries b) Unique sector apply equally to all characteristics demand specialized treatment c) Standard practices never need modification d) Industry customs have no accounting impact