Here's a couple of reasons/examples why profit is subjective:
1) Inventory valuation methods (LIFO,
FIFO
, average cost, etc.)
Change the inventory valuation method, and the reported profit will change also.
2)
Depreciation methods
(straight line, double-declining balance, etc.)
Again, if the
depreciation method
is changed, reported profit changes too.
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
discuss the objective of business
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
utfyvkjkhyuboy
Discuss; there is no one universally accepted accounting theory.
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
no
discuss the objective of business
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
utfyvkjkhyuboy
Discuss; there is no one universally accepted accounting theory.
Cash accounting and accrual accounting are two methods of accounting in cash accounting system all expenses and revenues are recorded when actual cash is paid or received while in accrual profit and loss statement, revenues and expenses are recorded when they are actually occurred and timing of receipt and payment of cash is not important.
difine the nature and scope of management accounting?
1. Tax is a deductable item from accounting profit as tax is calculated on profit before tax amount to reach at profit after tax account which is also the net profit available for distribution to share holders of company.
Profit that is made by superb accounting. By using the accounting trade, money is saved that would have been lost without it. However I am supposed to reach 150 characters.
as simple as that to know the net profit or loss from business in an accounting period. for more about financial accounting visit indianaccounting.blogspot.com