For the factors listed below, indicate whether they significantly contribute to the use of accrual accounting for
Question:
Transcribed Image Text:
Significant contributor Not a significant contributor Factor Establishment of accounting standard setters such as the International Accounting Standards Board a. b. Invention of the double-entry system c. Creation of indetinite-life entities d. Development of credit cards and other of bookkeeping such as corporations substitutes for cash e. Preparation of periodic financial reports f. Incomplete transactions at reporting dates g. The going-concern assumption h. Accoun ting standards such as IFRS require accrual accounting i. Financial reports using a ccrual accounting are simpler to understand compared with tho se prepared using cash accountin
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
Factor Significant contributor Not a significant contributor a Establishment of accounting standard ...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
For the 10 activities listed below indicate whether each is likely to form part of the duties of the following roles: (a) Management accountant (b) Financial accountant (c) Cost accountant (d) None...
-
Cash and Accrual Basis Nalezny Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Nalezny Corp. requests you as its...
-
Cash flows rather than accounting profits are listed in Table 13-1. What is the basis for this emphasis on cash flows as opposed to net income?
-
Decedent died owning an insurance policy that would pay $2 million to Beneficiary. Six months later, the insurance company paid Beneficiary $2 million plus $50,000 interest. What portion of the...
-
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for...
-
The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 31, 2020: Required 1. Prepare a classified multiple-step income statement that would be...
-
Traders in major financial institutions use the Black-Scholes formula in a backward fashion to infer other traders' estimates of \(\sigma\) from option prices. In fact, traders frequently quote...
-
Cedric Company recently traded in an older model computer for a new model. The old model's book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair...
-
2) At the post office, Tiffany paid $11.04 for 24 stamps. At this rate, how much would it cost for Tiffany to buy 18 stamps? 3) At a factory, there are 40 new cars produced every 8 hours. How many...
-
Two control rods are attached at A to lever AB. Using trigonometry and knowing that the force in the left-hand rod is 1 30 F = lb, determine (a) The required force F2 in the right-hand rod if the...
-
Accrual accounting necessarily involves professional judgment, because accruals depend on decisions about uncertain future events. These judgments and decisions include the choices of accounting...
-
For each of the following scenarios, determine the effects (if any) of the accounting change (correction of error, change in accounting policy, or change in estimate) on the relevant asset or...
-
Is the probability distribution for a free particle consistent with a purely particle picture, a purely wave picture, or both?
-
All the students of a university are assigned ID numbers. The ID number consists of the first three letters of a students last name, followed by four numbers. How many possible different ID numbers...
-
Mr. Doe wants to send two employees in his company on a business trip. He has five employees in the company. In how many different ways can he organize the trip?
-
Suppose you toss a coin three times. What is the probability of tossing three heads in a row? What is the probability of tossing three tails in a row? What is the probability of tossing either three...
-
A stock broker owns five suits and 12 ties. Assuming that all the suits and ties match, determine how many different outfits (combinations) the stock broker can wear.
-
The Whiter Smile Company is about to begin selling a new toothpaste. Company planners know that the probability of the new product being profitable is 10 %. They also know from previous market...
-
Solve the resulting problems if the given changes are made in the indicated examples of this section. In Example 6, change the exponent to 1/3. Data from Example 6 Plot the graph of the function y =...
-
Gopher, Inc. developing its upcoming budgeted Costs of Quality (COQ) with the following information: Expense Item Budget Raw Materials Inspection $ 15,000 EPA Fine 200,000 Design Engineering 15,000...
-
You have recently been hired by International Products Inc.s (IPI) internal audit department and are sitting in your office planning for your upcoming meeting with the head of internal audit. It is...
-
Clare Cherry Cola (CCC) is a privately held soda company specializing in the manufacturing and distribution of soda across Canada. CCC is a fairly new entrant to the market, incorporated in 2008, but...
-
Below are several intangible assets . a. A firm purchased a famous luxury goods brand name for $50,000,000. The firm has the exclusive right to use this name forever. b. Over the years, by...
-
What strategies might you use to implement the personal change needed to support organizational change? What is the relevance of unity consciousness in organizational leadership, communications, and...
-
Recognizing the literature (and its limitations) for conveying policing organization, management, and change - what management/organizational changes are needed in policing today? Why? How do we set...
-
How do organizations effectively navigate the complexities of organizational change, integrating advanced change management methodologies to mitigate resistance and foster sustainable transformation?
Study smarter with the SolutionInn App