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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.
What else can I help you with?
What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
Discuss the objective and benefit of cost accounting?
discuss the objective of business
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is the advantage of accounting profit?
utfyvkjkhyuboy
Essay for accounting theory?
Discuss; there is no one universally accepted accounting theory.
What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
Is economic profit always less than accounting profit?
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.
Is economic profit equal to accounting profit?
no
Discuss the objective and benefit of cost accounting?
discuss the objective of business
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is the advantage of accounting profit?
utfyvkjkhyuboy
Essay for accounting theory?
Discuss; there is no one universally accepted accounting theory.
Is tax is added in accounting profit or not?
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.
What is the difference between cash accounting profit and loss and accrual accounting profit and loss?
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.
What is meant by the phrase 'accounting profit'?
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.
Discuss the nature and scope of management accounting?
difine the nature and scope of management accounting?
Why you prepare profit and loss account?
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
