Verifiability of financial information, Accounting Basics

Assignment Help:

Q. Verifiability of Financial information?

Verifiability Financial information has verifiability when independent measurers are able to substantially duplicate it by using the same measurement methods. Verifiability eradicates measurer bias. The necessity that financial information be based on objective evidence arises from the demonstrated needs of users for reliable unbiased financial information. Unbiased information is particularly necessary when parties with opposing interest's credit seekers and credit grantors rely on the same information. If the information is demonstrable this enhances the reliability of information.

Financial information is never completely free of subjective judgment and opinion it always possesses varying degrees of verifiability. Cancelled invoices and checks support some measurements. Accountants are able to never verify other measurements such as periodic depreciation charges for the reason that of their very nature. Therefore financial information in many instances is verifiable merely in that it represents a consensus of what other accountants would report if they followed the same procedures.


Related Discussions:- Verifiability of financial information

In accounting, 1. what is accounting ? 2. what should we/i do to know accou...

1. what is accounting ? 2. what should we/i do to know accounting 3. what are the basics of accounting? 4 is accounting is hard ?

Continuity concept, Accounting supposes that the business as an accounting ...

Accounting supposes that the business as an accounting entity will continue to operate for a long time in the future, unless there is superior evidence to the contrary. The enterpr

#title.blessing., Implication of applying accounting concept wrongly

Implication of applying accounting concept wrongly

Buffer inventory is required, Compensation for the uncertainties inherent i...

Compensation for the uncertainties inherent in supply and demand

What is deferred profit, A portion of company profits allocated by an emplo...

A portion of company profits allocated by an employer, in good years, to an employee's trust.Contributions on behalf of every employee are expressed as a percentage of salary with

Balance of the merchandise inventory account, Q. Balance of the Merchandise...

Q. Balance of the Merchandise Inventory account? The balance of the Merchandise Inventory account is a cost of the inventory that should be on hand. This fact is a major reason

On january 1, On January 1, 2012, Lexmark Company's Accounts receivable acc...

On January 1, 2012, Lexmark Company's Accounts receivable account had a debit balance of $10,000. During January, 2012, the company billed customers for services in the amount of

What is the use of balance sheet, Q. What is the use of balance sheet? ...

Q. What is the use of balance sheet? Balance sheet -- a statement of the financial position of a company at a single specific time(often at the close of business on last day

A vendor reduces an item listed at $140 on july 1st by 20%, A vendor reduce...

A vendor reduces an item listed at $140 on July 1st by 20%, and then reduces it another 25% on September 1st. What is the sale price of the good after the last reduction? A. $7

Ryan''s express has total credit sales, Ryan's Express has total credit sal...

Ryan's Express has total credit sales for the year of $178,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on Decemb

Write Your Message!

Captcha
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!

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