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What is accounting assumption?
accounting assumptions provide a foundation for recording the transactions and preparing the financial statements there from.
Distinguish between cost accounting and financial accounting?
Financial accounting is the process of preparing financial statements using data and figures. Cost accounting is similar but you look for alternative ways to figure these figures and data.
Can we prepare financial statements using cost accounting?
Cost accounting primarily focuses on capturing and analyzing cost data to aid in internal decision-making, rather than preparing financial statements. However, the information derived from cost accounting can inform financial statements by providing insights into costs and profitability. While cost accounting is essential for managerial purposes, financial statements are typically prepared using financial accounting principles, adhering to standardized guidelines like GAAP or IFRS. Thus, while they can complement each other, cost accounting alone does not suffice for preparing formal financial statements.
Updating accrual accounting records prior to preparing financial statements is called?
closing process
Which accounting rule requires that a degree of caution should be applied when preparing financial statements under conditions of uncertainty?
Reliability
How major accounting concepts are used in preparing financial statements?
HomeThis BlogAuthorAccounting BodiesSubscribeAccounting TermsRevision NotesQuestionsE-BooksFeaturedinternet advertisingMajor Accounting Concepts
How do you standardize balance sheets and income statements and why is standardization useful?
By using international accounting standards for preparing of financial statement will standardize them and standardization has benefit that it helps every body to read the financial statements and anybody can easily compare with each other and done analysis as well.
What is the purpose of financial accounting?
The purpose of financial accounting is to provide financial statements and financial reports to individuals who require them. This includes preparing a balance sheet, income statement, cash flow and notes. People that use this information usually have an interest in the company due to investment or ownership.
Why Accounting standard are unnecessary for the purpose of regulating financial statements?
Accounting standards may be unnecessary in the sense that preparing financial statements is seen as a legal requirement not one that should always be bound by the accounting principles. It isa priority to follow the rules stated by the law even if it may not agree with the known standard.
A journal is not useful for?
preparing financial statements.
Who is responsible for preparing financial statements?
Director's
Explain the term accounting cycle why is it cycle?
Series of steps in recording an accounting event from the time a transaction occurs to its reflection in the financial statements; also called bookkeeping cycle. The order of the steps in the accounting cycle are: recording in the journal, posting to the ledger, preparing a trial balance, and preparing the financial statements.Its is an cycle because when the financial statements are made at the end of the year and after the closing of the financial year u have to start ur business again for the new financial year. So everything u do repeats again. Hence, it is a cycle. Hope it answered the question.
