Which of the following statements pertaining to Accounting is correct? A. Accounting is a fixed science. B. The double-entry system of accounting has been used for centuries C. The objective of external financial statements is to communicate the economic effects only of completed transactions and other events in the entity for management decision-making D. General purpose financial statements were developed primarily because all outside party users have the same information needs

Which of the following statements pertaining to Accounting is correct? A. Accounting is a fixed science. B. The double-entry system of accounting has been used for centuries C. The objective of external financial statements is to communicate the economic effects only of completed transactions and other events in the entity for management decision-making D. General purpose financial statements were developed primarily because all outside party users have the same information needs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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.What is the conceptual framework of Accounting ? 2.Identify the characteristics that make financial statements useful to its users 3.What are the constraints faced in providing useful information ? 4.What assumptions are made in financial reporting ?
The accounting concept that requires financial information to be supported by independent, unbiased evidence is: a. Verifiable objective principle. b. Conservatism convention concept. c. Business entity assumption. d. Materiality convention concept.
Accounting for Securitization under SFAS No. 140 (2000) is a limited attempt to describe complex transactions that are structured to yield desired economic and accounting outcomes. This accounting raises three issues for users of financial reports. State these three issues.
Financial accounting is a branch of accounting refers to the communication of information within an organization so that internal decisions can be made in an appropriate manner. True False
The primary objective of management accounting is O A. to provide management with information useful for planning and control of operations. O B. to provide banks and other creditors with information useful in making credit decisions. O. C. to provide the relevant taxation authorities with information about taxable income. O D. to provide shareholders and potential investors with useful information for decision making.
The following describes Financial Statements, except; * It is an art of recording, classifying, summarizing and interpreting of accounting transaction. A collection of summary-level reports about an organization's financial results which consists of four major financial reports. Financial information which is communicated by an enterprise to external parties Historical in nature but it all depends on management's judgement The objective of financial statement is to * know the financial status of the organization, whether the business is making profit or running at loss, and what corrective action to be taken. form a Private Finance Initiative (PFI) establishment. use accounting techniques such as marginal costing budgetary controls and standard costing. finance hire purchase.
The objective of general-purpose financial reporting is? to provide users with financial information that implies total freedom from error to provide companies with the option to select information that favors one set of interested parties over another O to provide financial information about the reporting entity that is useful to present and potential equity investors, lender and other creditors in making decisions in their capacity as capital providers to provide a metric for financial information used to determine when the boundary between two or more entities should disregarded and the entities considered to be a licensing arrangement
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Please explain in detail