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Is the adequate disclosure accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition?
Wiki User
∙ 12y ago
yes, yes it is
Wiki User
∙ 12y ago
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Usefulness of accounting theory to practicing accountant?
it is useful in guiding them to prepare and understand the financial statements and report
why is it important to understand both process and technology in associated with accounting information system?
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How can you justify a cash movement in Accounting?
Cash flow statements can be used by businesses to track all cash that flows in and out of their operations. They can help small business owners understand the difference between the cash flow and net income and justify cash movements in accounting.
How does accounting provide relevant data to users?
Accounting is a way to provide a systematic data about any company's statements and expenses. due to its consecutive and systematic entries it provides a relevant data. Internal users need to understand accounting data in order to measure the economic performance of businesses and to make business decisions
Why does Accounting often intimidate people?
Many people find accounting difficult. They may have taken a course and had trouble in it. They may also know people who have studied for, and taken the notoriously difficult Certified Public Accounting exam. It has a typical pass rate between 40% and 50%. Certain areas of accounting, such as US Federal Income Taxes, and financial reporting for derivatives, are absurdly complex. Finally, when most people encounter accounting information, its either in their own tax returns and in corporate financial statements. Both are densely complex and difficult for non-accountants to understand.
Which management information system KFC use?
The KFC uses the management information system. The KFC uses the management information system in accounting because they understand that it is very important in production.
What is purpose of standards?
A standardized accounting system has predictable elements and structure. A standard system produces financial statements that make it easy (at least possible) to compare results for businesses within the same industry. And, since the structural elements are the same across the board, once you understand the financial elements of the system, it is possible to understand any financial statements for any industry.
Why accrual-basis financial statements provide more useful information than cash-basis statements?
Accrual basis accounting provide the reader with all of the exchanges a business has, even if they are made on account. A transaction made on account is comparable to someone paying with a credit card. If the business purchased $40,000 in equipment on account, you would see this in accrual basis account but it would not show up in cash basis accounting until the business paid off the account. If you read a cash basis accounting statement, you will only see the movement of cash, many business transactions aren't made with cash. Both accrual basis and cash basis statements contain important information, but they simply different ways of showing the activities of a business.
What do you understand accounting principals discuss the nature and significance of accounting principles?
They are set of accepted accounting standards and general rules.
Why is GAAP necessary?
GAAP, or Generally Accepted Accounting Principles, is necessary for several reasons. First, it helps ensure consistent and standardized financial reporting across different organizations and industries, making it easier to compare and analyze financial statements. Second, it provides transparency and helps maintain the integrity and reliability of financial information. Lastly, GAAP is necessary for compliance with legal and regulatory requirements, as well as for gaining the trust of investors, lenders, and other stakeholders.
Is the study of financial accounting theory a waste of time?
Some may say that the study of financial accounting theory is a wate of time, however, when you logical think we need theory to help us to understand what is happening. If a company produce a financial report with all numbers etc, i doubt that we will all understand what is going on, that's why we have theories, this help to guide us as to what is actually happening. It helps all that is interested in the information to understand it more clearly though not every still understand the language of accounting.
What do you understand by cost accounting?
Cost accounting involves collecting, analyzing and summarizing various courses of action. Then, accounting advises the management on what to do.
