Chapter 2, Problem 4Q

Explain

Accounting can only be useful if it is capable of affecting people's A. understanding B. attitudes O C. opinions O D. behaviour

It is important to understand your financial statements. While this is not everyone’s area of expertise, it is critical that you know how to read a balance sheet and income statement. What do each of these statements tell you? Why are they important?

the follówing statements about an a... Which of the following statements about an adjusted trial balance is true?

Which of the following statement is false? 1.Financial Accounting is optional. 2.Management Accounting is used by internal users. 3.Financial Accounting is based on double entry system. 4.Management Accounting is future oriented.

Why accounting is an infromation system? Explain with your own point of view with example.

6 The mechanics of accounting involve analyzing the effect on the accounting equation of financial transactions. Knowing how transactions affect the accounting equation allows you to consider and account for all the ramifications of sometimes complicated transactions. You are mentoring an accounting intern who asks for clarification about trial balances. She wants to know if a trial balance balances, would that guarantee that the trial balance is correct? Consider her question. What possible errors could happen and still allow the trial balance to balance?

How can you ensure that your accounting records are accurate?

Which concept states that any policies adopted for accounting should not change frequently unless it is the demand of the changing circumstances   Oa. Cost Concept   O b. Money Measurement Concept   Oc. Consistency Concept   O d. Going Concern Concept