(a)
Accounting Standards: For uniformity and transparency, all the companies and business entities are required to maintain their accounting records under the frame work of rules and guidelines set by the Accounting standards setting bodies in consultation with the professional accountants and the business.
To Explain: The accounting information and the generally accepted accounting principles (GAAP).
(b)
To comment: On the person S’s suggestion of reporting to the prospective investors conforms to the qualitative characteristics of accounting information, and to discuss the things which person S wants to include in the information for investors will conform to the financial reporting guidelines.
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Chapter 2 Solutions
Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf
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