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Does the full disclosure principle requires that the notes to the financial statements report a change in accounting method for inventory?
Wiki User
∙ 9y ago
The full disclosure principle requires that the notes to the financial statements report a change in accounting method for inventory.
Wiki User
∙ 9y ago
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How the legislation and accounting concepts affect an organization's accounting policies?
Reporting methods, measurement systems, and disclosures used by a specific company. The accountant should evaluate the appropriateness of accounting policies employed by management. A description of the company's accounting policies should be presented in a separate section preceding the footnotes to the financial statements or as the first footnote. Disclosure of accounting policies should include Accounting Principles and methods of application that involve: (1) a selection from generally accepted alternatives; (2) those peculiar to the industry or field of endeavor; and (3) unusual or different applications of Generally Accepted Accounting Principles (GAAP). Examples of disclosures are basis of Consolidation, depreciation methods, and inventory pricing. Disclosure of accounting policies assists financial readers in better interpreting a company's financial statements. Thus it results in fair presentation of the financial statements.
How legislation and accounting concepts affect an organization accounting policies?
Describe how the legislation and accounting concepts affect an organisation's accounting policiesReporting methods, measurement systems, and disclosures used by a specific company. The accountant should evaluate the appropriateness of accounting policies employed by management. A description of the company's accounting policies should be presented in a separate section preceding the footnotes to the financial statements or as the first footnote. Disclosure of accounting policies should include Accounting Principles and methods of application that involve: (1) a selection from generally accepted alternatives; (2) those peculiar to the industry or field of endeavor; and (3) unusual or different applications of Generally Accepted Accounting Principles (GAAP). Examples of disclosures are basis of Consolidation, depreciation methods, and inventory pricing. Disclosure of accounting policies assists financial readers in better interpreting a company's financial statements. Thus it results in fair presentation of the financial statements.
Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information?
timeliness
The selection of an inventory costing method has no significant impact on the financial statements true or false?
The selection of an inventory costing method has no significant impact on the financial statements. true or false
Where does inventory belong in the elements of financial statements?
Assets
How do the consistency principle and the full disclosure principle affect inventory valuation?
Consistency principle indirectly affects inventory value as one would need to use the same cost assumption all the time (FIFO or avg cost). Full disclosure doesn't affect inventory valuation but one would need to disclose to investors the cost assumption used in the financial statements.
What are the basic concept are accounting?
Major aspect of accounting in any business organization is financial accounting and inventory accounting. While the financial accounting deals with the monetary aspects the inventory accounting deals with the quantitative aspects of the goods and services of the business organization. Important financial accounting aspects are payment voucher, journal voucher, cashbook, general ledger, bank reconciliation and trial balance. Important inventory accounting aspects are opening balance, purchases, sales and closing balance.
Why physical inventory?
Physical inventory is a process where a business physically counts its inventory. It may be mandated by financial accounting rules.
Where is the amount of merchandise inventory disclosed in the financial statements?
Amount of merchandise inventory is disclosed at the bottom of the financial statement under balance sheet.
What are the basic accounting concepts and conventions?
Major aspect of accounting in any business organization is financial accounting and inventory accounting. While the financial accounting deals with the monetary aspects the inventory accounting deals with the quantitative aspects of the goods and services of the business organization. Important financial accounting aspects are payment voucher, journal voucher, cashbook, general ledger, bank reconciliation and trial balance. Important inventory accounting aspects are opening balance, purchases, sales and closing balance.
What is the difference between quicken and quickbooks?
Quicken is basically for personal financial management or maybe a self employed person with simple accounting requirements. Quickbooks in the other hand is a full blown accounting and financial management software for Small Businesses which includes Invoices, Bills, Inventory, Income Statements, etc...
Is audting generally associated with only accounting and financial records?
No, any inventory work is an audit.
