Question

In: Accounting

Do you think the financial statements provides ALL the necessary information to external users to make...

Do you think the financial statements provides ALL the necessary information to external users to make better decision? Mention any information that should be known by external users and not included in the financial statements?

Q2: From a personal perspective, why do accountants have to divide the life of the entity into periods?

Solutions

Expert Solution

Ans 1

Information that should be known by external users and not included in the financial statements are:-

Irregularities in the decisions of management.

Market value of the business.

Non-financial factors influencing the financial statements, for example, environmental factors.

Ans 2

Accountants divide the life of the entity into periods in order to follow the time period principle. If it is not done, then the business will not be able to ascertain that if they are incurring losses or gains. It helps in determining the financial position at a particular point of time.

Hi mate,
I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.
In case of doubt, please comment. I will consider myself fortunate if I can help you.
All the best for your bright future.
Be safe from corona. Wear a mask before going out and wash hands frequently especially before touching face

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Q1 :Do you think the financial statements provides ALL the necessary information to external users to...
Q1 :Do you think the financial statements provides ALL the necessary information to external users to make better decision? Mention any information that should be known by external users and not included in the financial statements? Q2: From a personal perspective, why do accountants have to divide the life of the entity into periods? answer both Questions no hand writing or pics
The IASB assumes that financial information that helps investors and other users of general purpose financial reporting make their investment decisions is useful for all other information users. Do you agree?
The IASB assumes that financial information that helps investors and other users of general purpose financial reporting make their investment decisions is useful for all other information users. Do you agree? Discuss.
why are owners considered external users of financial information while board of directors are internal users.
why are owners considered external users of financial information while board of directors are internal users.
Explain what is meant by financial accounting and the primary users. Do you think it is...
Explain what is meant by financial accounting and the primary users. Do you think it is important to have rules for presentation of financial statements? Why or why not? 300 words
Do you think a compilation of financial statements is (or it is not) identified as an...
Do you think a compilation of financial statements is (or it is not) identified as an attest-service? Explain and give at least 2 examples of attestation and non-attestation service!
What are the two types of users of financial statements. How do they use the financial...
What are the two types of users of financial statements. How do they use the financial statements?
There are many information that might be useful for users of financial statements. How- ever, the...
There are many information that might be useful for users of financial statements. How- ever, the information are not always mandated in the form of accounting standard. A. Should all the accounting information be mandated for presentation and disclosure in financial statements by way of accounting standards? Why? B. What component/part of the Conceptual Framework should the standard setters use to decide whether an accounting standard should be issued for mandating or not mandat- ing the disclosure of accounting information?...
There are many information that might be useful for users of financial statements. How- ever, the...
There are many information that might be useful for users of financial statements. How- ever, the information are not always mandated in the form of accounting standard. A. Should all the accounting information be mandated for presentation and disclosure in financial statements by way of accounting standards? Why? B. What component/part of the Conceptual Framework should the standard setters use to decide whether an accounting standard should be issued for mandating or not mandat- ing the disclosure of accounting information?...
1:        Users of financial statements Identify at least three types of users of financial statements. Describe their...
1:        Users of financial statements Identify at least three types of users of financial statements. Describe their primary use of the financial statements and how the misstatement of those statements might injure the user. 2:        Overview of the Financial Statement Audit What is a financial statement audit, and what is the overall objective of the audit? What must the auditor do to accomplish this objective?
Why is it necessary to prepare formal financial statements if all of the data are in...
Why is it necessary to prepare formal financial statements if all of the data are in the statement columns of the worksheet? Identify the account(s) debited and credited in each of the four closing entries, assuming the company has net income for the year. Distinguish between a reversing entry and an adjusting entry. Are reversing entries required? Indicate, in the sequence in which they are made, the three required steps in the accounting cycle that involve journalizing. Identify, in the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT