Kindly note that answers for 10 marks questions should be approximately of words.
Kindly note that answers for 10 marks questions should be approximately of words. Each question is followed by evaluation scheme. This is accepted convention or a practice in accounting. Give a small introduction on accounting conventions and elucidate all the eight accounting conventions.
Guidelines that arise from the practical application of accounting principles. An accounting convention is not a legally-binding practice; rather, it is a generally-accepted convention based on customs, and is designed to help accountants overcome practical problems that arise out of the preparation of financial statements.
As customs change, so to will accounting conventions.
If an oversight organization, such as the Securities and Exchange Commission SEC or the Financial Accounting Standards Board FASB set forth a guideline that addresses the same topic as the accounting convention, the accounting convention will no longer be applicable.
Explanation of all the 8 types of conventions: The various kinds of convention include: It states that accounting method used in one accounting period should be the same as the method used for events or transactions which are materially similar in other period i.
This also involves treatment of transaction and valuation method. Consistency is also advisable so that the comparison of accounting figures over time is meaningful. Consistency also states that if a change becomes necessary, the change and its effect should be clearly stated.
An item should be regarded as material if there is reason to believe that knowledge of it would influence decision of informed investors. An item is also considered material if its omission or misstatement could distort the financial statement such that it influences the economic decision of users taken on the basis of financial statement.
This is an accounting practice that emphasizes great care in the anticipation of possible gains while possible losses are efficiently provided for.
Prudence requires an accountant to attempt to ensure that the degree of success is not overstated.
This convention states that the financial statement should be made on verifiable evidence. It states that information relating to the economic affairs of the enterprise which are of material interest should be clearly disclosed to the readers.
Accountants do not account for items unless they can be quantified in monetary terms.
Items that are not accounted for unless someone is prepared to pay something for them include things like workforce skill, morale, market leadership, brand recognition, quality of management etc. This convention seeks to ensure that private transactions and matters relating to the owners of a business are segregated from transactions that relate to the business.
Management Accounting uses the following tools or techniques to fulfill its responsibilities and duties towards management. • Financial Statement Dear students get fully solved assignments. Materiality principle: Accountants follow the materiality principle, which states that the requirements of any accounting principle may be ignored when there is no effect on the users of financial urbanagricultureinitiative.comnly, tracking individual paper clips or pieces of paper is immaterial and excessively burdensome to any company's accounting department.
call in emergency) assignment drive spring program mbads / mbahcsn3 / mban2 / pgdban2 / mbaflex semester i subject code & name mb financial and management accounting bk id b credits 4 marks 60 note: answer all questions.
Mb financial and management accounting solved assignment Mb financial and management accounting solved assignment bpcs user manual. Pros and cons of walmart in small towns. Entrepreneurship owning your future 11th edition pdf scad atlanta .