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- The Conceptual Framework The IASB's Framework for the preparation and presentation of financial statements, sets out the concepts that underlie the preparation and presentation of financial statements that external users are likely to rely on when making economic decisions about an entity. In addition the Framework sets out the recognition criteria for assets and liabilities, which is of particular importance. Required: a. Explain the purpose of the Framework b. Define assets and liabilities and explain the important aspects of their definitions. Explain why these definitions are of particular importance for the preparation of an entity's statement of financial position and income statement.9.-Which of the following is not a function of financial management? Options:A) Handling decisions about personnel policies that will be involved in financial activities. B) Determining the asset structure of a company. C) The development of a planning and analysis of the activities that have to do with the company's resource flows. D) Determination of the company's financing mix. (class exercise)The most general and most important objective of financial reporting is to: A. Provide useful information for decision making B. Ensure management objectives are met C. Safeguard the company's assets D. Keep information summarized, simplified and condensed Reset Selection
- TRUE-FALSE–Conceptual Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organiza-tion's operations. 1. 2. Financial statements are the principal means through which financial information is communicated to those outside an enterprise. 3. Users of the financial information provided by a company use that information to make capital allocation decisions. An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit. 4. Financial reports in the early 21st century did not provide any information about a company's soft assets. 5.9.-Which of the following is not a function of financial management? Options:A) Handling decisions about personnel policies that will be involved in financial activities. B) Determining the asset structure of a company. C) The development of a planning and analysis of the activities that have to do with the company's resource flows. D) Determination of the company's financing mix.Indicate whether each statement describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions. The principal users are the organizations managers. The key focus is on the entity as a whole. The rules and principles are very flexible. The information gathered is usually available after an independent audit has been completed.
- The primary objective of financial reporting is to provide informationa. useful for making investment and creditdecisions.b. on the cash flows of a company.c. about the profitability of an enterprise.d. to the federal government.Which statement is correct: Select one: a. Management accounting’s focus and emphasis is on past-oriented reports. b. The purpose of financial information in management accounting is to communicate organization's financial position to investors, banks, regulators, and suppliers. c. All statements are correct. d. Management accounting focuses on measuring, analyzing, and reporting financial and nonfinancial information to help managers estimate future revenue, costs, and other measures to forecast activities and formulate strategies to increase the competitive advantage of the organization. e. In management accounting, rules of measurement reporting require financial statements, e.g. prepared for the budgeting purpose, to be prepared in accordance of GaAAP.Provide examples of real-world situations where Asset Liability Management helped financial institutions to manage risks and maintain stability.
- Suppose you are tasked to construct and evaluate complex financial statements, including those relating to group accounts, to show an organization's financial position and performance. How do SASB standards relate to your task?Which of the following is a major challenge facing the accounting profession? O A. Accounting for hard assets O B. Backward-looking information O. Financial measurements O D. TimelinessCompare ways in which organisations could use management accounting to respond to financialproblems.