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What would happen if the accounting principles were not followed?
Wiki User
∙ 11y ago
The company might not have a good future.
Wiki User
∙ 11y ago
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How will an accounting class help me in my business?
An accounting class would help you manage your books and check both profits and losses for your business. A general accounting course would just give you the basic principles.
Where might one find information on an equity method of accounting?
The best place to go to find information on an equity method of accounting would be an accounting textbook. Examples are Principles of Accounting, and Accounting Made Simple, which are both available on Amazon.
Indirect Effects of a Change in Accounting Principle?
it is one of three effects of change in accounting principle (direct,indirect, and cumulative effects).The indirect effect of change in accounting principles are differences in non-discretionary items based on earnings (e.g bonuses) that would have occurred if the new principle had been used in prior years.quoted from Becker CPA
What is the relevance of the accounting principles in the accounting practice?
There are general rules and concepts that govern the field of accounting. These general rules-referred to as basic accounting principles and guidelines-form the groundwork on which more detailed, complicated, and legalistic accounting rules are based. For example, the Financial Accounting Standards Board (FASB)uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards.The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices.If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company's stock is publicly traded, federal law requires the company's financial statements be audited by independent public accountants. Both the company's management and the independent accountants must certify that the financial statements and the related notes to the financial statements have been prepared in accordance with GAAP.GAAP is exceedingly useful because it attempts to standardize and regulate accounting definitions, assumptions, and methods. Because of generally accepted accounting principles we are able to assume that there is consistency from year to year in the methods used to prepare a company's financial statements. And although variations may exist, we can make reasonably confident conclusions when comparing one company to another, or comparing one company's financial statistics to the statistics for its industry. Over the years the generally accepted accounting principles have become more complex because financial transactions have become more complex.RelevanceRelevance requires that the financial accounting information should be such that the users need it and it is expected to affect their decisions.Reliability requires that the information should be accurate and true and fair.Relevance and reliability are both critical for the quality of the financial information, but both are related such that an emphasis on one will hurt the other and vice versa. Hence, we have to trade-off between them. Accounting information is relevant when it is provided in time, but at early stages information is uncertain and hence less reliable. But if we wait to gain while the information gains reliability, its relevance is lost.ExamplesAfter the balance sheet date but before the date of issue a company wants to dispose of one of its subsidiaries and is in final stages of reaching a deal but the outcome is still uncertain. If the company waits they are expected to find more reliable information but that would cost them relevance. The information would be outdated and no longer very relevant.After the balance sheet date during the time when audit is carried out, it becomes clear which debts were realized and where were not hence it improves the reliability of allowance for bad debts estimate but the information loses its relevance due to too much time being taken. Timeliness is key to relevance.
What is a good sentence with the word accounting in it?
There is no accounting for taste. I would like to hear a good accounting of your acitvities today.
How will an accounting class help me in my business?
An accounting class would help you manage your books and check both profits and losses for your business. A general accounting course would just give you the basic principles.
Where might one find information on an equity method of accounting?
The best place to go to find information on an equity method of accounting would be an accounting textbook. Examples are Principles of Accounting, and Accounting Made Simple, which are both available on Amazon.
What would generally be taught at an accounting school?
In an accounting school, there are several course that are being offered. Some general principles that are taught are bookkeeping, auditing and finance.
How do you record the use of baking supplies by using accounting principles?
An Excel spreadsheet would be a good tool to record the use of baking supplies.
Difference between Accounting Concepts and Conventions?
Concepts tend to be written in the accounting standards whereas conventions are not and are assumed. Examples of concepts would be: Accruals concept, Prudence concept. Examples of conventions would be: double entry, accounting equation (assets - liabilities = capital)
What would happen if the whole world followed the five pillars of Islam?
If the whole world followed all the teaching of Islam, the world would be a safe,secure and peaceful place.
How will accounting cloud computing reduce my income tax rate?
No, accounting cloud computing software will not help you have a reduction in your income taxes. All of us would like to pay no taxes but it will never happen.
Indirect Effects of a Change in Accounting Principle?
it is one of three effects of change in accounting principle (direct,indirect, and cumulative effects).The indirect effect of change in accounting principles are differences in non-discretionary items based on earnings (e.g bonuses) that would have occurred if the new principle had been used in prior years.quoted from Becker CPA
Who invite journal entry?
To record a journal entry, an individual would typically initiate it. Journal entries are used to document financial transactions in accounting, so they are typically made by the company's accounting or finance team members in accordance with accounting principles and guidelines.
What are the requirements for Indian students to take admission in cpa cource?
If your bachelor's degree is from a foreign country, you would have to apply for some kind of reciprocity, which may involve taking a state test to ensure that your education meets United States standards. Also, the CPA Exam is based on U.S. GAAP(Generally Accepted Accounting Principles). Indian accounting principles are probably different. Business law and tax code would be different of course too.
What is a constitency?
A constituent is a person residing within the district or territory of a congressman. For example, if your congressman represents district 5, then all people living within district 5 would be his constituents. They need not be a fan to be a constituent.
What is the relevance of the accounting principles in the accounting practice?
There are general rules and concepts that govern the field of accounting. These general rules-referred to as basic accounting principles and guidelines-form the groundwork on which more detailed, complicated, and legalistic accounting rules are based. For example, the Financial Accounting Standards Board (FASB)uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards.The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices.If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company's stock is publicly traded, federal law requires the company's financial statements be audited by independent public accountants. Both the company's management and the independent accountants must certify that the financial statements and the related notes to the financial statements have been prepared in accordance with GAAP.GAAP is exceedingly useful because it attempts to standardize and regulate accounting definitions, assumptions, and methods. Because of generally accepted accounting principles we are able to assume that there is consistency from year to year in the methods used to prepare a company's financial statements. And although variations may exist, we can make reasonably confident conclusions when comparing one company to another, or comparing one company's financial statistics to the statistics for its industry. Over the years the generally accepted accounting principles have become more complex because financial transactions have become more complex.RelevanceRelevance requires that the financial accounting information should be such that the users need it and it is expected to affect their decisions.Reliability requires that the information should be accurate and true and fair.Relevance and reliability are both critical for the quality of the financial information, but both are related such that an emphasis on one will hurt the other and vice versa. Hence, we have to trade-off between them. Accounting information is relevant when it is provided in time, but at early stages information is uncertain and hence less reliable. But if we wait to gain while the information gains reliability, its relevance is lost.ExamplesAfter the balance sheet date but before the date of issue a company wants to dispose of one of its subsidiaries and is in final stages of reaching a deal but the outcome is still uncertain. If the company waits they are expected to find more reliable information but that would cost them relevance. The information would be outdated and no longer very relevant.After the balance sheet date during the time when audit is carried out, it becomes clear which debts were realized and where were not hence it improves the reliability of allowance for bad debts estimate but the information loses its relevance due to too much time being taken. Timeliness is key to relevance.
