Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
LIMITATIONS OF FINANCIAL ACCOUNTING
1. Simply transactions which can be calculated in terms of money can be recorded in the books of accounts. Actions, though important they may be to the business, do not locate a place in the accounts if they cannot be calculated in terms of money.
2. According to the cost idea, assets are recorded at the cost at which they are acquired and so ignore the changes in values of assets brought about by changing value of money and market factors.
3. There is disagreement between one accounting principle and another. For instance, current resources are valued on the foundation of cost or market price either is less according to the principle of conservatism. So, in one year cost basis may be taken, while in another year market price may be taken. This standard contravenes the principle of consistency4. The balance sheet is basically the result of the personal judgment of the accountant with regard to the acceptance of accounting policies and as such objectivity factor is lost.
5. Financial accounting can be understood just by persons who have accounting knowledge.
6. Inter firm comparison and relative study of two periods are not promising under this system, as necessary past information cannot be made obtainable.
7. Financial accounting does not point to the cost behavior, so cost control cannot be adopted.
Revocation, alteration and revival of a will 1. A will may be revoked or altered by the maker of it at any time when he is competent to dispose of his free property by will. (
statement of the problem
FOREING BRANCHES The head office my set up a branch in a foreign country. IAS 21 requires that the results of that foreign branch to be translated into the local currency for t
How do I treat with Expenses Outstanding, for example, Marketing Expenses outstanding at year end is $1250. How do I adjust?. It is a note under the trial balance.
practical problems of chapter one of company accounts
Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Explain and state the assumptions that underlie your answer. 1. It i
normative and positive
The functional currency method (formerly temporal method) Under this method, the branch is considered to be an extension of the head office and this is reflected by the trading
Jaedan Industries has the following account balances as of December 31, 2010. The firm's dividend payout ratio is 25% and the tax rate is 34%. The firm's stock price on December
Problem 1 (28 marks) Pre-Contribution Balance Sheets and Fair Values June 30, 20X9 (in thousands of $) Swag Co. Perk Ltd. Pre- Contribution Fair Value Pre- Contributi
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd