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What is accounting assumption?
accounting assumptions provide a foundation for recording the transactions and preparing the financial statements there from.
What are the limitations of financial management?
Financial Statements Are Derived from Historical Costs. ... Financial Statements Are Not Adjusted for Inflation. ... Financial Statements Do Not Contain Some Intangible Assets. ... Financial Statements Only Cover a Specific Period of Time. ... Financial Statements May Not Be Comparable. ... Financial Statements Could be Wrong Du
Basic functions of controllership?
Some of the functions that a controller would be responsible for are as follows: Manage the accounting functions, e.g., accounts receivable, accounts payable, payroll, general ledger maintenance, preparation and consolidation of financial statements. Supervise accounting personnel. Prepare budgets. Prepare financial forecasts. Prepare required tax returns, e.g., sales taxes, payroll taxes, excise taxes, and corporate taxes. Prepare financial statements in accordance with Generally Accepted Accounting Principles. Meet with outside auditors or other independent accountants and facilitate their work. Assure regulatory compliance by preparing or reviewing reports and my instituting necessary procedures. Design, implement, and monitor internal controls to safeguard assets and provide reliable financial statements.
What is the going concern assumption?
In accounting, "going concern" refers to a company's ability to continue functioning as a business entity. It is the responsibility of the directors to assess whether the going concern assumption is appropriate when preparing the financial statements. Financial statements are prepared on the assumption that the entity is a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the normal course of operations.
How does a review differ from an audit particularly in terms of the level of assurance implied by the auditor's report?
An audit of historical financial statements is a form of attestation service in which the auditor issue a written report expressing an opinion about whether the financial statements are in material conformity with generally accepted accounting principles. When presenting information in the form of financial statements, the client makes various assertions about its financial condition and results of operations. External users who rely on those financial statements to make business decisions look the auditor's report as an indication of the statements' reliability. They value the auditor's assurance because of the auditor's independence from the client and knowledge of financial statement reporting matters. A review of historical financial statements is another type of attestation service performed by CPAs. Whereas audit provides a high level of assurance, a review service provides a moderate amount of assurance on the financial statements, and less evidence is necessary to support this level of assurance.
Who is primarily responsible for presenting financial statement information?
Management is initially responsible for preparing financial statements and auditors are responsible for reasonable assurance
A journal is not useful for?
preparing financial statements.
The cost principle is the basis for preparing financial statements because it is?
The cost principles is the basis for preparing financial statements because it is? B. Relevant and objectively measured, and verified.
What does compilation of prospective financial statements by public accountants involve?
the service of preparing the statements in whole or part from information and significant assumptions provided by the responsible party, usually a member of management
Duties and responsibilities of senior accountant?
Senior accountants have a number of duties and responsibilities. The are responsible for preparing financial statements, analyzing financial information, and supporting the closing process at the end of every month.
Duties of financial accountant?
Financial accountants are responsible for preparing monthly, quarterly, and yearly statements based on the company data. They also prepare company budgets and are aware of any tax filing requirements.
There is really no benefit in preparing financial statements in any particular order?
false
Preparing personal financial statements is part of which of the five steps of the financial planning process?
B. Analyse your current financial position
Explain how fundamental accounting concepts are used in preparing financial statements?
explain using various example, how the major accounting concepts are used in preparing financial statement??
Would it be advisable to allow businesses some flexibility or creativity in preparing financial statements?
no
What is accounting assumption?
accounting assumptions provide a foundation for recording the transactions and preparing the financial statements there from.
Updating accrual accounting records prior to preparing financial statements is called?
closing process
