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How is accounting data thought to be useful to investors? How is accounting data thought to he useful to creditors? What is the clean surplus theory?
Discuss as many of the potential trade-offs among the qualities mentioned in SFAC No. 2 as you can and give either a general or a concrete example of each one.
Would changing the asset definition in the conceptual framework to one concerned with property rights have any other ramifications? Discuss.
Conservatism is discussed in paragraphs 91-97 of SFAC Na 2. Why is its role in SFAC No. 2 rather ambiguous?
How does feedback value relate to predictive ability and accountability? How does verifiability Myer from the older concept of objectivity?
How does earnings as discussed in SFAC No. What is comprehensive income? Discuss two possible rea-sons why this repetition occurred.
How does the freedom from bias mentioned in ASOBAT compare to the quality of neutrality mentioned in SFAC No.
Why must objectives be at the topmost level of a conceptual framework of accounting?
Using the different valuation methods discussed, what possible different user preferences. do you see among the various user groups?
Why do you think that the income tax return mandated by the federal government is an example of user heterogeneity?
Under accountability orientation, Jiri makes a strong case for use of historical costing. Why would fairness in financial reporting be difficult to implement?
How has the definition. of accounting been modified in recent years? What potential conflicts are present in terms of different user needs?
How do objects-different from postulates? Why is the problem of heterogeneous users so critical in the development of accounting theory?
What situations should prevent Halliburton from booking these overruns prior to collection?
Why do you think securities markets more rapidly reflect bad news than good news?
How do the definitions of postulates, concepts and principles differ? Are the examples of postulates, principles and concepts consistent with their definitions?
Why is the residual equity theory more in line with recent research In finance than entity and proprietary theory?
Why is earnings-per-share calculation an example of the residual equity of a firm being broader than merely its current common shareholders?
What is the difference between owners' equity accounts representing shareholders' claims as equitv holders versus shareholders' interests as owners.
Evaluate the Board's attempt to use a finite uniformity approach to the investments covered in the standard. How did the dissenters to SFAS No 115 want to deal?
Give as many examples as you can of flexibility under current generally accepted accounting principles.
How do Lev's views on disclosure differ from the views of Brownlee and Young? Are there differences in relevant circumstances between these two transactions?
What are possible benefits of a disclosure process that is integrated with major policies? What is meant by the term degrees of representational faithfulness?
SFAS No. 13 in effect regards a lease period of 75 percent or more as a relevant. What economic factors (cash flow differentials) lie behind this policy choice?
Is the choice of LIFO a relevant circumstance compared to FIFO? How does this definition of circumstances relate to the definition of relevant circumstances?