User Account

All Pages

Critique the analogy of accrual accounting to nail

Assignment Help Finance Basics
Reference no: EM13574075

A finance textbook likens accrual accounting information to "nail soup." The recipe for nail soup includes the usual soup ingredients such as broth and noodles, but it also includes nails. This means with each spoonful of nail soup, one gets nails with broth and noodles. Accordingly, to eat the soup, one must remove the nails from each spoonful. The textbook went on to say that accountants include much valuable information in financial reports but one must remove the accounting accruals (nails) to make the information useful.

Required:

Critique the analogy of accrual accounting to "nail soup."

Reference no: EM13574075

Questions Cloud

Real estate assets and markets are unique when compared to : real estate assets and markets are unique when compared to other assets or markets. discuss the primary ways that real
Compute the internal rate of return promised by the : chateau beaune is a family-owned winery located in the burgundy region of france which is headed by gerard despinoy.
Clculate the loan balance at the end of years 1 2 3 and 4 : you are considering the purchase of an apartment complex. the following assumptions are made the purchase price is
Relevant cost case behemoth motors corpbehemoth motors corp : relevant cost case behemoth motors corp.behemoth motors corp. bmc is a major manufacturer of automobiles in the united
Critique the analogy of accrual accounting to nail : a finance textbook likens accrual accounting information to nail soup. the recipe for nail soup includes the usual soup
How much of the wealth of a typical us household is tied up : how much of the wealth of a typical u.s. household is tied up in real estate? how does this compare to the role that
How is managerial accounting different from financial : how is managerial accounting different from financial accounting. comment on the different needs and use of financial
Do you agree or disagree with this statement explain how : consider the following while accrual accounting information is imperfect ignoring it and making cash flows the basis of
The companys minimum desired rate of return is 12 the : cam co. is evaluating a project requiring a capital expenditure of 806250. the project has an estimated life of four

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd