Monday, February 18, 2019
Accounting :: Free Essay Writer
I - A. Representational loyalty is accomplished when performances and events affecting the entity atomic number 18 presented in financial statements in a manner that is in obligation with the actual underlying transactions and events (CICA, pecuniary statement Concepts 1000.21 (a), 2003). It means that both of information in the financial statement such as poem and descriptions must be factual. The independent auditors checked the computer ID tags on individually piece of equipment to confirm the actual numbers, and for that reason Byrn Company observes the representational faithfulness that is one of subsets of reliability. I - B. The consonance principle states that businesses should use the same accounting methods and procedures from period to period (Harrison, Horngren, Lemon, & Lemon, 2004, p. 279) Hence the financial statement of Carroll Company violates the consistency principle.I - C. The time-period concept ensures that accounting information is reported at time d intervals (Harrison, Horngren, Lemon, & Lemon, 2004, p. 114). Still, the company believes that quarterly financial information can be issued whenever it is comfortable for the accounting department, and they published its first three quarterly reports during the 10th calendar month of the year.Consequently the financial statement of Dawns Data Enterprises violates the opportuneness that is one of subsets of relevance.I - D. The financial statement representation of a transaction or event is verifiable if knowledgeable and independent observers would concur that it is in agreement with the actual underlying transaction or event with a reasonable degree of precision. Verifiability focuses on the correct application of a soil of measurement (CICA, Financial statement Concepts 1000.21 (b), 2003). Even though the comptroller of the border knows the electric pencil sharpener may qualify as an asset by long time of benefit expected, he decided that the cost of the sharpener should be expensed. As a result, the financial statement of the bank violates the verifiability that is one of subsets of reliability.I - E. instruction that helps users to predict an entitys future income and cash flows has predictive value (CICA, Financial statement Concepts 1000.20 (a), 2003). The companys financial statements show ten years successful operation, and it helps Bill to invest in the company. The financial statement of Wilson Enterprises follows the predictive value and feedback value which is one of subsets of relevance.II - A. A dress give away purchases a $3,500 sewing machine to use for alterations.A dress knock offs assets increase amount of $3,500 because assets mean all resources owned by a business.