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Is equity and retained earnings revalued?
Equity and retained earnings are generally not revalued in the same way that certain assets can be revalued under accounting standards. Retained earnings represent cumulative profits that have not been distributed as dividends, and they are adjusted only through net income or losses and dividend declarations. Equity can reflect changes in market value through stock prices, but the accounting entries for equity, including retained earnings, are based on historical cost and not subject to revaluation. However, certain transactions like stock splits or equity financing can affect these figures.
What is the Financial Accounting Standards Board's ideal of neutrality?
accounting standards should be designed to provide the best possible information for economic decision making without regard to how that information may affect economic, political, or social behavior.
How does organization structure affect the design of management accounting system?
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How does business and accounting affect the society?
how does business and accounting affect in the society
How would management accounting reports incorporate into financial accounting reports?
Management accounting reports provide detailed, internal insights that help managers make informed business decisions, focusing on operational efficiency, budgeting, and forecasting. These reports can influence financial accounting by guiding strategic decisions that ultimately affect the financial statements. For instance, insights from management reports on cost control or revenue projections can lead to adjustments in financial reporting, such as asset valuations or expense recognition. While management accounting is more future-oriented, its findings can enhance the accuracy and relevance of financial accounting reports.
What is meant by quality of earnings?
In recent years, I've read earnings announcements from companies and I've come to doubt the transparency of even the veracity of what I've been reading. After digging into the financial statements, I've found what I consider some dubious earnings reporting. Financial analysts are increasingly concerned about earnings reporting and have reached certain conclusions.* The measure of quality is the degree to which earnings are generated from internally developed initiatives, as opposed to external forces.* If a company has increased earnings year over year from improved cost efficiencies or sales generated from a marketing campaign, that company has a high quality of earnings.* If a company's earnings are attributed to outside sources such increasing commodity prices, this is seen as low quality of earnings.* It has also come to mean the degree to which management's choices of accounting estimates can affect reported income.* Some analysts question whether some firms engage in "earnings management."
Define concept of materiality in accounting?
Any omission, misstatement or non disclosure of information that can adversely affect users decision or discharge management from its accountability.
How does an increase in liability affect the debit or credit side of the accounting equation?
An increase in liability will affect the credit side of the accounting equation.
What are the limitations of management accounting?
Based on Financial and Cost Records. 2.Personal Bias. 3.Lack of Knowledge and Understanding of the Related Subjects. 4.Provides only Data. 5.Preference to Intuitive Decision Making. 6.Management Accounting is only a Tool. 7.Continuity and Participation. 8.Broad Based Scope.
What issues the ISO 9000 certification standards?
The ISO 9000 certification standards are issued by the International Organization for Standardization The ISO 9000 certification standards is the family of standards set by ISO that relates to [QMS] or quality management systems. It mainly focuses on the deliverance and assurance the companies are able to meet the needs of their customers, clients and stake holders. It deals with the fundamental needs of management and principles which also affect the organizations' product and services.
What is distributable earnings?
Distributable earnings refer to the portion of a company's profits that can be distributed to shareholders as dividends, after accounting for necessary reserves and reinvestments. This figure is crucial for investors, as it indicates the company's capacity to return value to its shareholders. Distributable earnings are typically calculated from net income, adjusted for non-cash expenses and other factors that affect cash flow. Ultimately, it reflects the financial health of a company and its commitment to returning profits to its investors.
How does contingent liability impact earnings?
Contingent liability can impact earnings because it is a projected and future liability. Not knowing what the outcome of the liability is, it can unexpectedly affect a large amount of earnings.
