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Why is it important to adopt a consistent basis for the preparation of financial statement?
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
Importance of accounting standards?
Financial statements are prepared to summarize all business activities by an enterprise during an accounting period in monetary terms & report financial outcomes in terms of performance, status of assets, liabilities & flow of cash. These business activities vary from one enterprise to other on one hand and size & volume of business on the other hand. To compare the financial statements of various reporting enterprises poses some difficulties because of the divergence in the methods and principles adopted by these enterprises in preparing their financial statements. In order to make these methods and principles uniform, comparable, transparent, establish accountability and bring true & fair view of Financial Statement - Accounting Standards are evolved.
Which effect is least likely to be achieved by using sequence in a narrative?
It is important to know which financial statements are being referred to in order to know which include significant account estimates. Providing the statements would be helpful.
Why there is implementation and adoption of IFRS and IAS in the Philippines?
IFRS and IAS in the Philippines are implemented and adopted in order to prepare the general purpose financial statements. To comply with every IFRS, it grants limited exemptions from the general requirement.
What does STO mean in bank statements?
Standing order
What is window dressing?
Window dressing refers to actions taken or not taken prior to issuing financial statements in order to improve the appearance of the financial statements.
Which financial statements include significant accounting estimates?
It is important to know which financial statements are being referred to in order to know which include significant account estimates. Providing the statements would be helpful.
What are the SBA loan requirements and where can I get them from?
In order to receive an SBA loan, you will need to have a business plan, the amount you will be needing as a loan, historical financial statements, projected financial statements and the personal financial summaries of those who will be guaranteeing the loan. You should be able to apply for an SBA loan at almost any bank.
Of what must the accountant be cognizant in order to compile financial statements?
the form of its accounting records, the stated qualifications of its accounting personnel, the accounting basis on which the financial statements are to be presented
There is really no benefit in preparing financial statements in any particular order?
false
Why is it important to adopt a consistent basis for the preparation of financial statement?
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
Importance of accounting standards?
Financial statements are prepared to summarize all business activities by an enterprise during an accounting period in monetary terms & report financial outcomes in terms of performance, status of assets, liabilities & flow of cash. These business activities vary from one enterprise to other on one hand and size & volume of business on the other hand. To compare the financial statements of various reporting enterprises poses some difficulties because of the divergence in the methods and principles adopted by these enterprises in preparing their financial statements. In order to make these methods and principles uniform, comparable, transparent, establish accountability and bring true & fair view of Financial Statement - Accounting Standards are evolved.
By what clause does an accountant state his independence in respect to the client when accepting an engagement to perform a review?
"I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with GAAP."
Why is it important to prepare the financial statements prior to the closing activities?
It'd be far better to end-up with the current transactions and the related financial details while starting over the new one. And with that, the financial statements would do so the needed in order the tax returns, payroll information, etc is vivid for the business to submit whenever required. This would be the reason for preparing the statements.
Give 5 reasons for preparing financial statements?
To know the profitability of the company. To satisfy the shareholders with their investment in the company. In case of financial sourcing, these statements can be of relevance for the company for instance, banks will need to look at its stand in order to be certain and convinced that their money will be repaid.
What is cost on financial statements?
Cost is basically the things or services that you need to spend on or have spent on in order to make the whole system operational.
Which effect is least likely to be achieved by using sequence in a narrative?
It is important to know which financial statements are being referred to in order to know which include significant account estimates. Providing the statements would be helpful.
