What is accounting?

Q: What are the pro forma financial statements?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain in your own words what generally accepted accounting principles (GAAP) are.

A: GAAP are the rules , standard , guidelines and procedures according to which accounts are prepared.…

Q: What are the principles of accounting according to GAAP?

A: GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles,…

Q: _______________________ accounts is a liability

A: Accounts receivables are the items acquired on credit from vendors that have not yet been paid for.…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: What is the general purpose of financial disclosures of financial statements?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: What is the significance of accounting to people?

A: SOLUTION-   ACCOUNTING TO PEOPLE  MEANS ACCOUNTING TO USERS . THERE ARE SOME USERS OF ACCOUNTING ARE…

Q: What is accrual accounting?

A: Accrual basis of accounting is an accounting method based on which accrual transaction are recorded…

Q: asis accounting. Explain with examples?

A: Answer: Basis of differences Cash Basis Accrual Basis Types of transactions recorded Only cash…

Q: What is the difference between financial statements and financial reporting?

A: Financial statements and financial reporting are both belongs to the financial accounting but…

Q: Distinguish between financial liabilities and non-financial liabilities.

A: Liabilities are defined as the amount of money which is owed by a firm in exchange for goods and…

Q: What is financial accounting's principal purpose?

A: The financial accounting main and principal purpose is to allow the third parties to assess the…

Q: Explain how accounting activities are different from financing activities by providing real-life…

A: Accounting is the practice of preparing accounting records, including measuring, preparation,…

Q: The course concerned with debtors is *

A: Option (a). Revenues is the correct answer

Q: How does the rule of debit and credit relative to accounting equation?

A: Accounting equation:   It is a mathematical expression that presented all assets of the firm are…

Q: Why are the rules of debit and credit same for both liability and capital?

A:

Q: What is Accounting? Bookkeeping vs. Accounting Purpose of Accounting Generally Accepted Accounting…

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: Must obligations be known contractual debts in order to be reported as liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: In accounting, what is the distinction between a nominal account and a real account?

A: Solution Concept Nominal account Expenses and losses Debit Income and gains Credit…

Q: What is meant by “economic Consequences” in accounting standard-setting

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

Q: What exactly is accounting? Describe and debate the accounting standards and assumptions

A: SOLUTION-   MEANING OF ACCOUNTING - IT IS A PROCESS OF RECORDING , SUMMARIZING ,ANALYZING AND…

Q: What is a debtor

A: Solution:- Debtor meaning as follows under:-

Q: What are the different assumptions of Accounting principles?

A: Accounting assumptions provide a fundamental base and structure to record business transactions.The…

Q: What does it mean to recognize an accountingtransaction?

A: The accounting transactions that directly or indirectly alters the financial aspect of the…

Q: Is accounting theory really necessary for the making of accounting rules?

A: Solution:- Is accounting theory really necessary for the making of accounting rules:- Accounting…

Q: what are the difficulties may users of financial statements face it in using financial or accounting…

A: Accounting disclosure information: It is information that shows expenses and revenues of the…

Q: Why are disclosures important in financial statement and what are its benefits?

A:

Q: What is accounting? Explain and debate the accounting rules and assumptions.

A: Introduction : Accounting is the process of recognizing, documenting, summarizing, analyzing,…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: Define what is an off-balance sheet activity? Also provide example of an off-balance sheet an…

A: Off-Balance sheet Activity means the assets or liabilities which are not reflected in the balance…

Q: What are the effects on creditors, including secured creditors during voluntary administration?…

A: creditors are those person supply goods or services to the company, provide loan to the company,…

Q: Through financial reporting perspective, what are the liability three essential characteristics…

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: What uses of financial accounting information are made by (a) investors and (b) creditors?

A: Financial accounting information provides information regarding the financial activities of the…

Q: Why debtors list must be equal to debtors control

A: Account receivable means the amount due from customer whom we sold the goods on credit.

Q: Identify the different types of liabilities, how judgment can affect liability recognition and…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What are the essential characteristics of liabilities for purposes of financial reporting?

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: What's the difference between credit and debit in accounting terms

A: There are three golden principal of accounting.

Q: Is a liability a debit or a credit?

A: Liability is an obligation for any business entity. It simply means that the entity has owed…

Q: In broad general terms, what is the purpose of accounting?

A: Accounting: It can be defined as the process of summarizing and recording the financial events and…

Q: In general, what is the conceptual framework that underlies accounting principles?

A: Accounting principles are the specific rules and guidelines that are to be followed in preparation…

Q: How are the balance sheet and income statement affected by fair value accounting?

A:

Q: defination of accounting?

A: The business has various transactions while operating, the stakeholders of the business need to know…

Q: What is GAAP, Generally Accepted Accounting Principles?

A: The Generally Accepted Accounting Principles (GAAP)is a set of rules used for helping…

Q: Explain what the accrual basis of accounting is and who requires it.

A: Accrual basis of accounting: Under this method of accounting, the revenues, and their related…

Q: whats the difference between an expense and liability according to accounting?

A: Accounting: Accounting is defined as recording, summarizing and classifying the financial…