Accounting is irrelevant in decision making because the information it provides relates only to the past. Evaluate this remark

Q: adjusting entries so important for the truthfulness of the information presented in the financial…

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Q: What need has the changing definition of accounting fulfilled?

A: Accounting is described as process in which the transactions or events pertaining to the firm are…

Q: Explain the problems associated with inappropriate accounting practices.

A: Fraud: Fraud is a malicious act committed by people to fulfill their personal benefits. In case of…

Q: Changes in accounting policies are always accounted for as prospective in application. TRUE or…

A: Accounting policies means rules, guidelines and procedures that are used for the preparation of…

Q: To be useful, accounting must be relevant and have faithful representation. O True O False

A: Accounting means the process of recording the transaction , posting , summarising , interpreting…

Q: Evaluate the strengths and weaknesses of interpretive accounting theory

A: Interpretive Accounting theory:-Interpretive Accounting theory has evolved and made significant…

Q: If the accounting information is not clearly presented, which of the qualitative characteristic of…

A: Introduction Information in the books of accounts need some qualities, which are to be fulfilled in…

Q: Why are accounting principles, once adopted, normally consistently applied over time?

A: Accounting principles are the rules and guidelines that companies must follow when reporting…

Q: Explain voluntary changes in accounting principle.

A: An accounting principle is a general guideline to follow when recording and reporting financial…

Q: What do the decisions based on accounting information include?

A: Accounting information is the collection and processing of the business transaction to conclude the…

Q: Which of the following is not an advantage of accounting standards? Select one:   a. All of the…

A: Accounting standards are designed for thr purposes of standardisation of accoutning and reporting…

Q: What are some possible pitfalls of using nonauthoritative sources when doing accounting research

A: Non-authorized Sources:- These are the sources that are not permissible by the government and other…

Q: y available information.Accounting information is not useful unless it confirms previously available…

A: Accounting information is general purpose and should be designed to serve the information needs of…

Q: What is meant by a change in accounting principle? Describe the accounting treatment for a voluntary…

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Q: What is the indirect effect of a change in accounting principle?Briefly describe the reporting of…

A: Change in an accounting principle: This change occurs when a company decides to change from an…

Q: Question 2 Considering whether to use historical cost or fair value relates to which of the…

A: Accounting Policies refer to specific accounting principles and methods of applying these principles…

Q: When it is difficult to distinguish a change in accounting policy from a change in an accounting…

A: Accounting policies are the particular principles as well as procedures which are executed through…

Q: Why do you think Accounting Standards are mandatory?

A: Definition:   International Financial Reporting Standards (IFRS): IFRS are a set of international…

Q: If accounting information is timely, and has predictive as well as feedback value, then it is…

A: The accounting information is the data that is used by various stakeholders in order to make…

Q: How are changes in accounting principle applied?

A: Accounting Principles:   It refers to a set of guidelines that all organisations must follow while…

Q: From the following statements which one is not the correct classification of accounting theory

A: Accounting theory is the theory which is actually the set of guidelines, principles or in order…

Q: nship or differences between Accounting and accountability?

A: Accounting: Every business has various types of transactions like monetary, goods and services. To…

Q: are the two fundamental qualities that make accounting information useful for decision making. a.…

A: solution concept Relevance means the information that are relevant for the users of the financial…

Q: Why do you believe Accounting Standards should be mandatory?

A: A document created by a rule-making body that prescribes how accounting transactions should be…

Q: True or false: Studying the relationship of financial information with another information, whether…

A: The question is related to Auditing and is of Analytical procedure. It is the evaluation of…

Q: Discuss how a change in accounting policy is handled when it is impracticable to determine previous…

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Q: Which of the following would be accounted for as a change in accounting principle?

A: The correct option is "Changing an estimate for the allowance for doubtfull accounts. As per one the…

Q: Most changes in accounting principles are recorded and reported retrospectively. In a few…

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Q: The use of the cumulative effect method to account for a change in accounting principle violates the…

A: Accounting principles are the set of rules which define the way accounts should be prepared and…

Q: Which type of accounting change should always be accounted for in current and future periods?…

A: Change in accounting policy and reporting entity should not be accounted in current and future…

Q: Examine the advantages and disadvantages of interpretative accounting theory

A: Introduction : Interpretive Accounting theory has developed and contributed significantly to our…

Q: TRUE or FALSE Accounting records and statements are based on the most reliable data available so…

A: The objectivity principle states that accounting records should be free from personal opinions.  All…

Q: What exactly do you mean by the idea of materiality in accounting?

A: This question explains about the idea of materiality in accounting

Q: Is it still necessary to record a transaction if it has no net effect on the accounting equation?…

A: Accounting equation says that total assets in the business must always be equal to total liabilities…

Q: The use of alternative accounting methods

A: There are the following types of accounting methods: Cash Accounting method Accrual Accounting…

Q: Explain how and why some changes in accounting principle are reportedprospectively.

A: Changes in accounting principle: A change in accounting principle is said to be a change in a…

Q: May you tell me where I can get reliable IFRS relevant to accounting changes

A: This question explains about reliable IFRS relevant to accounting changes

Q: Role of Judgment in Application of Accounting Standard. Should it reduced or expand the role?

A: Irrespective of the approach that is used by the standard setters to establish accounting standards,…

Q: Would a change from LIFO to FIFO be a change in accounting principle or a change of estimate?How…

A: Describe whether the change from LIFO to FIFO would be a change in accounting principle or a change…

Q: Which of the following is not one of the approaches for reporting accounting changes? The change…

A: accounting change is a change that takes place in the accounting principles, accounting estimate or…

Q: The fundamental accounting principle requires “full disclosure.”  What are the consequences of not…

A: Accounting principles are the laws and rules that companies must follow while reporting financial…

Q: How does the ethics are important in the accounting?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: An item or information is considered MATERIAL in accounting if a. Its non-disclosure would influence…

A: As per accounting rules and concepts it is essential to record material items. An item or…

Q: n conceptual framework resolve accounting problems? How?

A: Introduction: Conceptual framework is a guide for preparing financial statements by identifying the…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.