The following eight factors have significant influence on accounting development. 1. Taxation. 2. Level of education. 3. Inflation 4. Culture. 5...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can...
The American Institute of Certified Public Accountants (AICPA) defines accounting as:"the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character, and interpreting the results thereof."...
If a reclassification has a significant effect on the financial statements, it should be appropriately disclosed. Consistency Consistency is crucial in reclassification accounting to maintain the comparability of financial information over time. Companies should apply consistent accounting policies and practices...
Checking account and current account can be used interchangeably. There is no significant difference between the two terms in terms of the basic functions of the account.. “Current Account” is more commonly used in the United Kingdom, while “Checking Account” is more commonly used in the ...
An unqualified opinion means the auditor believes the financial statements present a true and fair view without any significant misstatements. How does technology impact accounting and auditing? Technology streamlines accounting processes and enhances auditing efficiency through data analytics and automation. ...
non-typical entries. It complements the specialized journals by capturing transactions that may not fit into any specific category. By maintaining a comprehensive general journal, businesses can ensure proper recording of all significant financial events and maintain accurate and reliable financial records....
A change in accounting estimate occurs when there is the appearance of new information, which replaces the current data based on which the company had taken an earlier decision, resulting in two things – changing the carrying amount of an existing asset or liability and alteration of subsequent...
Specific situations in which an asset might become impaired and unrecoverable include when a significant change occurs to an asset's intended use when there is a decrease in consumer demand for the asset, damage to the asset, or adverse changes to legal factors that affect the asset. If these...
Understanding Accounting-Based Incentives Accounting based incentives typically reward performing executives with cash and company stock oremployee stock options. In firms of all sizes, incentive pay commonly comprises a significant portion of an executive's compensation. Companies determine annual incentive ...
By mid-2000, EOL was executing nearly $350 billion in trades. When the dotcom bubble began to burst, Enron decided to build high-speed broadbandtelecomnetworks.9When the recession hit in 2000, Enron had significant exposure to the most volatile parts of the market. As a result, many trusti...