The four most important accounting conventions are materiality, full disclosure, prudence and consistency.

What is the purpose of each of the four accounting conventions mentioned, i.e. what can be prevented by adhering to these conventions?

What do you think are the limitations of each of the four accounting conventions?

Answers

Answer 1

The purpose of the accounting conventions of materiality, full disclosure, prudence, and consistency is to ensure the reliability, transparency, and comparability of financial information, prevent misleading reporting, and facilitate effective decision-making.

The accounting convention of materiality aims to ensure that financial information includes significant and relevant details, preventing the omission of important information while avoiding excessive detail. However, its limitation lies in the subjective nature of determining what is material and what may vary based on users' perspectives.

Full disclosure convention requires providing all necessary information in financial statements, ensuring transparency. However, limitations may arise due to practical constraints in providing extensive details and potential omission of relevant information.

Prudence convention promotes caution by recognizing potential losses and expenses, preventing overstating of assets or income. However, its conservative bias can lead to understating profits, potentially impacting decision-making.

Consistency convention aims for uniformity and comparability in financial reporting across different periods. Yet, achieving absolute consistency may be challenging due to changes in accounting standards, business practices, and circumstances.

Overall, these conventions play a vital role in promoting reliable financial reporting, but their limitations highlight the need for professional judgment and interpretation in applying them effectively.

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Related Questions

I WILL MARK BRAINIST IF CORRECT

What is the best way to prevent germs from spending when coughing or sneezing?
Cover mouth with tissue
Cover mouth completely with hand
Sneeze in upper sleeve
Turn head away to sneeze

Answers

Answer:

Cover mouth wirh tissue

Explanation:

The CDC recommends that you cover your mouth and nose with a tissue when you cough and or sneeze.If you find yourself without tissue,cough or sneeze into your upper sleeve rather than your hands.

Answer:

cover mouth with tissue

assume there is a fixed exchange rate between the yen and the u.s. dollar. the expected return and standard deviation of return on the u.s. stock market are 21% and 15%, respectively. the expected return and standard deviation on the japanese stock market are 13% and 12%, respectively. the covariance of returns between the u.s. and the japanese stock markets is 2.5%. if you invested 60% of your money in the japanese stock market and 40% in the u.s. stock market, the expected return on your portfolio would be:

Answers

The deviation of a portfolio's returns from the mean is known as the standard deviation. The individual standard deviations and proportionate weights of the portfolio components are used to calculate it.

The portfolio's standard deviation is; qP=(wA2qA2+wB2qB2+2wAwBcovAB)1/2

What is meant by a standard deviation?

A measure of how dispersed the data are in relation to the mean is called the standard deviation (or ). Data with a low standard deviation are grouped around the mean, while data with a high standard deviation are more dispersed.

What is an example of a standard deviation?

Think about the data set: 2, 1, 3, 2, 4. The mean and the amount of squares of deviations of the perceptions from the mean will be 2.4 and 5.2, individually. As a result, the standard deviation will be 1.01 (5.2/5).

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Economists experience difficulties in accurately measuring income inequality because of which of the following? Choose one or more: A. The Gini index calculation discriminates against the poor in developed economies. B. Government programs are inefficient and difficult to monitor. C. large, underground economies that lack the reporting of income to the government D. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services. E. The population size of an economy impacts the distribution of data, causing large economies to show more inequality than smaller economies. F. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market G. in-kind transfers where goods and services are given as aid to the poor instead of cash

Answers

Accurately measuring income inequality is a complex task for economists. Factors such as unreported income in underground economies, reliance on "before tax" income measurements etc.,

C. large, underground economies that lack the reporting of income to the government.

D. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services.

F. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market.

G. in-kind transfers where goods and services are given as aid to the poor instead of cash.

Economists face difficulties in accurately measuring income inequality due to various factors. The options C, D, F, and G highlight some of these challenges.

C. Large, underground economies that lack the reporting of income to the government can result in significant underestimation of income inequality. In such economies, a substantial portion of income remains unaccounted for in official data, making it difficult to capture the true distribution of income.

D. Most measurements of income inequality use "before tax" income, which does not reflect the impact of taxation and government transfers. Using "after tax" income or disposable income would provide a more accurate picture of the income people have available for consumption.

F. The do-it-yourself production of goods and services, which are not bought or sold in the market, can lead to underestimating the actual income of individuals. These self-produced goods and services are not captured in traditional income measures, resulting in a potential underrepresentation of income levels and inequality.

G. In-kind transfers, where goods and services are given as aid to the poor instead of cash, can affect income inequality measurements. While these transfers provide assistance, they may not be accurately reflected in income data, potentially distorting the true distribution of income.

Accurately measuring income inequality is a complex task for economists. Factors such as unreported income in underground economies, reliance on "before tax" income measurements, do-it-yourself production, and in-kind transfers all contribute to the challenges faced in capturing the true extent of income inequality. Efforts are continuously made to refine measurement methods and account for these factors to provide a more comprehensive understanding of income inequality in economies.

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13. The directors of a firm have to discuss the following topics. Which topic is least likely to be directly affected by
the government's influence on the firm?
A) health and safety laws
B) the interest it pays on borrowed money
C) the minimum wage it must pay its workers
D) the replacement of the director of finance​

Answers

Answer:

D) the replacement of the director of finance​

Explanation:

The replacement of the director of finance is an internal affair on the company. It is not subject to any government regulations, unlike the other options. In choosing the director of finance, the company directors will select the best candidate for the job according to their judgment. In deciding who will the next director of finance, the directors don't need to consult any other person or regulations.

A) Health and safety laws,  interest on loans, and the minimum wages are subject to regulation by government agencies such as OSHA for health and safety and the Federal Reserve for interest rates.

Jose and Juanita are buying their first home. They want a low interest rate on loans, and they want to deal with someone local and personal
who will help them with the loan process.
O b) credit union
d) internet bank
O c) savings and loan association
O a) bank

Answers

Answer:

savings and loan association

The investment that Toyota makes in Uber is an investment in which part of Toyota's value-chain activities?

Answers

Answer:

Support activities.

Explanation:

In 1985, Michael E. Porter introduced to the world a value-chain model. The value-chain model describes the set of activities or processes that an organization uses to create value for its consumers by creating a product from just an idea or concept.

Basically, the value-chain activities is a framework for transforming an idea, concept or raw materials into a finished product and then to the end users (consumers).

Michael Porter’s value-chain comprises of five (5) primary activities and these includes; inbound logistics, outbound logistics, service, marketing and sales, and operations. Also, all of these primary activities make use of support activities, represented by a vertical column at the top of the primary activities.

This ultimately implies that, the support activities complements all of the primary activities and they include; procurement, firm infrastructure, technology development and human resources management.

Hence, the investment that Toyota makes in Uber is an investment in support activities of the value-chain model because it involves the procurement of another business to support its logistics.

Kendra needs to organize information about last year's sales. She wants to calculate how much revenue was generated and compare it to sales data from previous years. Which type of program will be the best for Kendra to use to help her achieve task

Answers

Answer:spreadsheet program - apex

Explanation:

Just took the test and failed that question

answer pls due today

answer pls due today

Answers

$61.

you subtract $555.00 and $494.00, the difference between them at $61.00

3. Not all the busines contracts
are legal. Justify.​

Answers

Answer:

They could be scams wanting money out of you. It is simple as that they can act as a business but they aren't. To be honest with you you are your own business because whatever you do is good or well so you don't need approval on others so my answer is scammers cause other businesses are working hard to make money and respect their customers!

Which statement best summarizes the law of demand ?

A. Sellers only supply goods that are in high demand from buyers.
B. Buyers are more likely to buy a products that is supplied in large quantities.
C. Sellers can easily substitute a product in high demand with another product.
S. Buyers are more interested in purchasing products as those products decline in price.

Thank you :)

Answers

Buyers are more likely to buy a product that is supplied in large quantities.

What is the law of demand?

The law of demand states that the quantity purchased varies inversely with the price. In other phrases, the better the rate, the lower the quantity demanded.

What are the types of demand?

Individual and Market DemandOrganization and Industry DemandAutonomous and Derived DemandDemand for Perishable and Durable GoodsShort-term and Long-term Demand

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Which of the following is not true regarding the natural rate of​ unemployment?

A. The natural rate is calculated by averaging the unemployment rate over an extended time period.
B. The natural rate of unemployment is 0 percent when the U.S. economy is not in a recession.
C. The natural rate includes both frictional and structural unemployment.
D. The natural rate of unemployment does not include cyclical unemployment.

Answers

The statement that is not true regarding the natural rate B. The natural rate of unemployment is 0 percent when the U.S. economy is not in a recession.

The natural rate of unemployment, also known as the non-accelerating inflation rate of unemployment (NAIRU), is the level of unemployment that exists in a stable and healthy economy, with no cyclical fluctuations. It represents the unemployment rate that is consistent with full employment and stable inflation. However, it is typically not zero percent. Even in a well-functioning economy, there will always be some level of frictional and structural unemployment. Frictional unemployment occurs due to temporary transitions or job search activities by individuals, which is caused by economic downturns and business cycles.

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since toni brookfield is retired, she has used income from her investment in the alger mid cap growth fund to supplement her other retirement income. during one three-month period, the fund grew by $10,000. if she withdraws 65 percent of the growth, how much will she receive?

Answers

If Toni Brookfield withdraws 65 percent of the growth from the Alger Mid Cap Growth Fund, she will receive $6,500.

This is because 65 percent of the $10,000 growth is equal to $6,500. Additionally, it's wise to have a diversified retirement income plan that includes multiple sources of income such as Social Security benefits, pension payments, and savings in various types of accounts. This can help provide financial stability and security in retirement.


To find the amount she will receive, we will multiply the total growth ($10,000) by the percentage she wants to withdraw (65%).

$10,000 * 0.65 = $6,500

This additional income will help supplement her other retirement income sources, ensuring she maintains a comfortable lifestyle during her retirement years.

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Over the course of a year, a nation records that its exports total an equivalent of $61,475,059, and its imports total an equivalent of $69,696,824. What is this nation’s balance of trade? a. Trade deficit of $131,171,883 b. Trade deficit of $8,221,765 c. Trade surplus of $131,171,883 d. Trade surplus of $8,221,765 Please select the best answer from the choices provided A B C D.

Answers

The $8,221,765 trade imbalance. The difference between a country's exports and imports is its trade balance.

When a country's exports exceed its imports, it has a trade surplus, whereas when imports exceed exports, it has a trade deficit. A nation's balance of trade can be calculated by subtracting its imports from its exports over a given period of time.

The country's balance of trade can be determined using the following formula: Balance of trade = Exports - Imports. Given, Exports = $61,475,059Imports = $69,696,824Substituting the given values in the formula, Balance of trade = Exports - Imports= $61,475,059 - $69,696,824= -$8,221,765.

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fast pls The Fair Labor Standards Act does not cover which of the following?
unemployment compensation
child labor
minimum wage
overtime pay

Answers

The answer is unemployment compensation :) hope this helps

Which of the following would be typically added to the Adjustments column
on a worksheet?
A. Depreciation
B. Supplies
C. Cash
D. Utilities

Answers

Depreciation would be typically added to the Adjustments' column on a worksheet. Hence, option A is correct.


What is meant by Depreciation?

A tangible item's cost can be spread out over the period of its useful life using the accounting approach of depreciation. Depreciation indicates how much of an asset's worth has been expended.

It makes it possible for companies to buy assets over a predetermined period of time and profit from those assets. Depreciation is the process of taking the whole cost of an expensive item you bought for your business out of consideration.

But rather than finishing it all in one tax year, you write off parts of it over time. You have more control over your budget when you depreciate assets since you can plan out how much money is written off each year.

Thus, option A is correct.

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What is an investment portfolio?
A. A selection of varied accounts
B. A selection of varied instruments
C. A selection of varied applications
D. A selection of varied stocks and bonds​

Answers

Answer:

In finance, a portfolio is a collection of investments aka stocks and bonds!

Using examples, explain why some human wants are needs for some people.​

Answers

Answer:

Necessities refer to the want of products or services essential for survival.

Explanation:

Examples of such wants are food, clothing, and housing. Out of these are the wants that improve the efficiency of humans and improve the quality of life such as food, better house, etc.

Help anybody I’m trying to solve this

Help anybody Im trying to solve this

Answers

The break-even point is the point where the profit is equal to .

Therefore to find the break-even point equates the profit function to be equal to 0.

P(x)=300x−25x²

300x−25x²=0

300x/x=25x²/x

300=25x

300/25=x

x=12Units

The break-even point is the point at which total revenue is equal to total cost. At this point, the profit is zero.

What is break-even point?

Breakeven points (BEPs) can be used in a wide range of situations. For example, the breakeven point in a property is the amount of money that the homeowner would need to generate from a sale to exactly offset the net purchase price, which includes closing costs, taxes, fees, insurance, and mortgage interest—as well as costs associated with maintenance and home improvements. At that price, the homeowner would break even, meaning he would not make or lose any money. BEPs are also used by traders to determine what price a security must reach in order to cover all costs associated with a trade, such as taxes, commissions, management fees, and so on.

A company's breakeven point is calculated similarly by taking fixed costs and dividing them by the percentage of gross profit margin.

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Trevor is a marketing professional in a small firm. He wants to promote his firm’s online shopping website. He targets only those customers in his promotional strategy who use online shopping. Which form of marketing does Trevor demonstrate?
A.
telemarketing
B.
outbound marketing
C.
social marketing
D.
inbound marketing

Answers

D ?
Inn bound marketing

Answer:

Ya it is D

Explanation: I got it right so you should too

Angie went to the park to study. While studying, an individual

roller skated past her and bumped into her. She was not

injured. Why doesn't Angie have a negligence claim?

A. Because she knew the roller skater personally

B. Because there were no witnesses to the interaction

C. Because she was not injured as a result

D. Because bumping into someone can never result in a

claim

Answers

Answer:

c.

Explanation:

because why did I choose C. I believe in my heart

State the type of skewness for a frequency distribution whose three quartiles are 21, 18 and 20.

Answers

Answer:

Left skew

Explanation:

Given the quartiles of a distribution :

21, 18 and 20

Lower quartile, Q1 = 18

Median, Q2 = 20

Upper quartile, Q3 = 21

Representing the quartiles of the distribution as box plot, we can see that the median, Q2 is much closer to the third quartile, Q3, Than it is to the first quartile, Q1. Hence, we have a left skew or a negatively skewed distribution.

State the type of skewness for a frequency distribution whose three quartiles are 21, 18 and 20.

5. The role of government in a market system
a. does not exist
b. is restricted to establishing property rights
C. includes improving situations that would otherwise result in a market failure
d. includes improving on situations that would otherwise result in a government failure

Answers

the answer is most likely c

Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the current fiscal year. The county operates on a calendar-year basis. Required: Prepare a journal entry for capital projects fund and governmental activities at the government-wide level.

Answers

In the current fiscal year, Fulbright County constructed a library in a high-growth area, funded by various sources. The task requires preparing a journal entry for the Library Capital Project Fund and governmental activities at the government-wide level.

To provide a comprehensive answer, specific details regarding the funding sources and amounts involved in the library construction are required. However, in general, the journal entry for the Library Capital Project Fund would involve recording the sources of funding as credits to the fund's cash or revenue accounts, depending on the nature of the funds received. Simultaneously, the corresponding debits would be made to the appropriate accounts, such as construction expenditures or asset accounts, to reflect the capital project's costs or the acquisition of the library building.

At the governmental activities level in the government-wide financial statements, the journal entry would entail capitalizing the library building as a long-term asset, recognizing any related depreciation expenses, and reflecting the funding sources as revenues or grants received. These entries aim to accurately represent the financial impact of the library construction on the county's overall financial position and results of operations.

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Look at the following chart. Producer A · Can produce 200 apples and 100 oranges in one day - Can produce 400 apples and o oranges in one day

Look at the following chart. Producer A Can produce 200 apples and 100 oranges in one day - Can produce

Answers

Answer:

D

Explanation:

Based on the following information, the opportunity cost of producer A is to choose to grow both varieties of fruits or apples only. Thus the correct option is D.

What does the opportunity cost?

A situation of abundance, where an individual has a variety of options available and chooses one option over another by evaluating their importance is referred to as opportunity cost.

In the given case, it is explained that Producer A's opportunity cost needs to determine between two choices. It states in the chart that producer A produces 200 apples and 100 oranges in a day. It also states that he can produce 400 apples and  0 oranges in one day.

Opportunity costs can be seen in every situation where a person is required to decide between something and giving up something else. In accordance with this theory, economic agents choose options that maximize benefits.

Therefore, option D is appropriate.

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What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.

Answers

Answer:

A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOU

PLZ PLZ PLZ HELP THS IS DUE TODAY!!!
Dealing with advertising clutter is one of the challenges of database marketing.


False

True

Answers

I believe it’s true
Maybe it might be true

___ establishes the salary of the chief executive officer of a company
A) Internal managers
B) Employees
C) The board of directors
D) The CEO

Answers

Answer:

C.The board of directions I think

3.
How is net profit determined ?
han

Answers

Answer:

Net profit: Calculate the net profit (aka net income) by subtracting total expenses from total revenue to see exactly how much a company profits (a new profit) or loses (a net loss). A company's net income over time is a great indicator of how well or poorly its management team runs the company.

Explanation:

hope it is helpful for you

have nice day

I need help with all those questions

I need help with all those questions

Answers

I can’t read that try typing them all out:)

Jane has a 30% interest in a cash-basis general partnership. Her adjusted basis in the partnership was $50,000 at the beginning of Year 1. There were no distributions to Jane during the year. On August 1, Year 1, the partnership borrowed $200,000 for the following reasons: Purchase depreciable business equipment $ 30,000 Pay balance on existing note in full 170,000 All of the partners are personally liable for all partnership debts. The partnership incurred a $250,000 loss in Year 1. What amount can Jane claim as a loss from the partnership on her Year 1 individual income tax return

Answers

Answer:

30000

Explanation:

because I was a people that wice

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