One of the well known accounting concepts is that of materiality. Required: (a) Explain what is meant

Question:

One of the well known accounting concepts is that of materiality. Required:

(a) Explain what is meant by this concept.

(b) State and explain three types of situation to which this concept might be applicable.

(c) State and explain two specific difficulties in applying this concept. (Association of Chartered Certified Accountants)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

See More Books

Question Posted: Jan 31, 2024 06:00 AM

See More Questions

One of the well known accounting concepts is that of materiality. Required: (a) Explain what is meant by this concept. (b) State and explain three types of situation to which this concept might be...
Reprinted with permission from The Parable of the Sadhu, by Bowen H. McCoy, Harvard Business Review. Copyright Harvard Business Publishing. Last year, as the first participant in the new six-month...
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
A chemical processing plant has a network of pipes that are used to transfer liquid chemical products from one part of the plant to another. The following pipe network has pipe flow capacities in...
Wilson Wonders bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10 percent. The bonds sell at a price of $850....
A 2500-lb automobile comes to a complete stop from 65 mph. If 60% of the braking capacity is provided by the front disk brake rotors, determine their temperature rise. Each of the two cast-iron...
Leicht Transfer & Storage provides warehousing services and often purchases pallets from Pallet Central. The companies followed a standard practice for documenting these transactions in which Pallet...
Deitz Corporation is projecting a cash balance of $30,000 in its December 31, 2016, balance sheet. Deitzs schedule of expected collections from customers for the first quarter of 2017 shows total...
You are about to make a delicious chicken Alfredo pasta for dinner but realize you are out of prego Alfredo sauce so you rush to the supermarket to pick uo a bottle. As yiu are heading down tge aisle...
A business produces a standard manufactured product. The stages of the production and sale of the product may be summarised as follows: Required: (a) What general rule do accountants apply when...
The annual final accounts of businesses are normally prepared on the assumption that the business is a going concern. Required: Explain and give a simple illustration of: (a) the effect of this...
The Producer Price Index values for plumbing fixtures and brass fittings from 1996 through 2001 are shown below. Convert the index numbers so that the base period will be 1996 instead of 1982. 1999...
(ii) A Mach 2 air stream passes over a 10 expansion corner. Find the Mach number of the flow downstream of the expansion fan. (4)
Swift Corporation is leasing a machine from Gray, Inc. Swift's incremental borrowing rate is 13%. The prime rate of interest is currently 7%. Gray's implicit rate in the lease is 9%; Swift knows this...
To what degree, though, do you concur that RFID technology offers advantages?
6. Identify bound and free variables in the first-order logic formula: Vxy A(x, y) V 3y B(x, y) Occurrence of x in A(x, y): Occurrence of y in A(x, y): Occurrence of x in B(x, y): Occurrence of y in...
1. Use either the parallelogram (tail to tail) or the triangle law (head to tail) to determine the resultant force magnitude and direction measured from the x axis. Assume 0 = 60. 00 40 FA=8 kN FB=6kN
On December 31, 2010, Magily Company acquired the following three intangible assets : (a) A trademark for $30,000. The trademark has seven years remaining in its legal life. It is anticipated that...
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
Object Limited is a retail outlet selling word processing equipment both for cash and on hire purchase terms. The following information has been extracted from the books of account as at 31 August...
On 31 March 20X4, D Biggs, who prepares his financial statements to 31 March, bought a lorry on hire purchase from Truck Fleet Ltd. The cash price of the lorry was 61,620. Under the terms of the hire...
RJ commenced business on 1 January 20X8. He sells refrigerators, all of one standard type, o hire purchase terms. The total amount, including interest, payable for each refrigerator, is 300....
A company licenses a new enterprise resource planning ("ERP") system in hopes that the system will better help the company manage its HR, accounting, inventory tracking, purchasing, and customer...
Which will reduce cash outflows that support lifestyle choices? I. Being a big saver for retirement. II. Adopting a pay-yourself-first approach. III. Paying down debt aggressively. Question 10Select...
Lavender Services uses time and material pricing. The billing rate, or time component, is R50 per hour of repair time and material loading charge is 40% of the invoice cost of parts used. Using these...

One of the well known accounting concepts is that of materiality. Required: (a) Explain what is meant

Question:

Step by Step Answer:

Frank Woods Business Accounting

Students also viewed these Business questions