The qualitative characteristics of relevance and reliability, Accounting Basics

Maryanne was looking to purchase a local business that sold coal jewelry to tourists along the interstate. The present business owner instructed his accountant, Jane Sane, CPA, to provide Maryanne with the company's financial statement and answer any questions she might have regarding the provided data. Sane mailed out the most recent set of financial statements, now three years old, to Maryanne. A few days later Sane received a phone call from Maryanne. Maryanne asked her how the ending inventory was calculated. Sane replied that inventory was calculated using a formula of her own design involving numbers provided by her late father. Explain how the qualitative characteristics of relevance and reliability have been violated in this situation.

Posted Date: 3/14/2013 6:26:49 AM | Location : United States

Related Discussions:- The qualitative characteristics of relevance and reliability, Assignment Help, Ask Question on The qualitative characteristics of relevance and reliability, Get Answer, Expert's Help, The qualitative characteristics of relevance and reliability Discussions

Write discussion on The qualitative characteristics of relevance and reliability
Your posts are moderated
Related Questions
Q. Summary of significant accounting policies? As part of their annual reports companies comprise summaries of significant accounting policies. These policies help users in int

Read it once and answer, if The following items appear on a balance sheet.   $   Inventory balance at bank cash in hand trade

Q. Define Expenses in terms of accounting? Expenses are outflows or else other using up of assets or incurrence of liabilities (or a combination of both) from rendering service

1. An accountant records a transaction when cash is paid or received under which basis of accounting?  cash  deferred  accrual  liability  2. When unearned revenue is initially rec

Has accounting become too interesting? In recent years, accounting has become front-page news and has been a key talking point among those connected with world of business. Reg

Investigate the principles, standards and conventions of accounting by:   assessing  the need for financial information, its purpose and limitations   analysing the role

Investment banking is a is an instrument which is used by the financial organization to take a improved investment decision like issuing IPO stocks bond etc.

Explain the term- Reversing entries and Interim statements Reversing entries - Made the first day of new accounting period. They are exact opposite of the adjusting entries

#questiSean Corp. issued a $60,000, 10 year bond at the face rate of 8% annually on 1/1/X0. The market rate was 10%. How much cash will the bond investors receive at the end of the

want to know sbp bsc rato analysis for 2010 t0 2014