On which financial statement and at what amount are accounts receivable reported?.

Politicalization of Accounting Standards

eimsori [14]

Answer: Some accountants have said that politicization in the development and acceptance of generally accepted accounting principles (i.e., rule-making) is taking place. Some use the term “politicization” in a narrow sense to mean the influence by governmental agencies, particularly the Securities and Exchange Commission, on the development of generally accepted accounting principles. Others use it more broadly to mean the compromise that results when the bodies responsible for developing generally accepted accounting principles are pressured by interest groups (SEC, American Accounting Association, businesses through their various organizations, Institute of Management Accountants, financial analysts, bankers, lawyers, and so on).

Instructions

(a) The Committee on Accounting Procedure of the AICPA was established in the mid- to late 1930s

and functioned until 1959, at which time the Accounting Principles Board came into existence. In

1973, the Financial Accounting Standards Board was formed and the APB went out of existence.

Do the reasons these groups were formed, their methods of operation while in existence, and the

reasons for the demise of the first two indicate an increasing politicization (as the term is used in

the broad sense) of accounting standard-setting? Explain your answer by indicating how the CAP,

the APB, and the FASB operated or operate. Cite specific developments that tend to support your

answer.

(b) What arguments can be raised to support the “politicization” of accounting rule-making?

(c) What arguments can be raised against the “politicization” of accounting rule-making?

Solution

a) CAP. The Committee on Accounting Procedure, CAP, which was in existence from 1939 to 1959, was a natural outgrowth of AICPA committees which were in existence during the period 1933 to 1938. The committee was formed in direct response to the criticism received by the accounting profession during the financial crisis of 1929 and the years thereafter. The authorization to issue pronouncements on matters of accounting principles and procedures was based on the belief that the AICPA had the responsibility to establish practices that would become generally accepted by the profession and by corporate management.

Explanation:

7 0

3 years ago

The intangible barrier known as ________________ limits the promotion of women or minorities to the highest positions in an orga

Aleksandr-060686 [28]

This intangible barrier is known as a glass ceiling. One of the reasons why this term exists is because minorities and women do not hold high positions in most corporations. Not only that but there are not a lot of minorities or women in corporate environments in general compared to white men.

3 0

3 years ago

Read 2 more answers

What are some of the advantages and disadvantages of a) individuals as innovators, b) firms as innovators, c) universities as in

ch4aika [34]

Answer:

a. Individuals as innovators

Advantages

1. Individuals have no limits (no hard rules) as to whom they can sell their innovation to.

2. An individual can be able lead a successful career with their innovation is any company

Disadvantages

1. Capital is a major limit for most individuals who may not be able to market their innovations.

2. Lack of Knowledge in Patenting innovation ideas have led to most individuals losing their innovation to others.

b. firms as innovators

Advantages

1. Successful innovation can help a firm improve its processes and increase its revenues.

2. Innovation in a unique product can often lead a firm to monopoly as the product becomes a necessity

Disadvantages

1. Firms have more rivalry such that others can copy the innovation or produce another close substitute which can render all efforts to a loss.

2.It takes so much time for the innovation to be approved in a firm as some structures of authority have to be followed and also depending on the culture of the firm towards innovation.

c. universities as innovators

Advantages

1. Universities are better able to raise capital through the Research Funds granted to them by stakeholders.

2. Innovation increases a University`s reputation and improves it rankings.

Disadvantages

1. High dependence on government agencies for funding by Universities means Innovation successes are easily affected by the fiscus.

2. Universities are not effective at marketing Innovations on their own.

d. government institutions as innovators

Advantages

1. The government can increase revenue by improving processes and cutting costs.

2. Innovation can improve transparency and help improve governance and administration.

Disadvantages

1. Adoption of innovation is usually slow as it has to pass so much bureaucracy.

2. Most personnel prefer working in private institutions hence the personnel to drive innovation in governments may be unavailable or inadequate

e. nonprofit organizations as innovators

Advantages

1. There is so much option for funding of innovations ranging from Individuals, Companies and Government

2. Most innovations are driven by Human Need hence their increased success.

Disadvantages

1. The innovation may not be able to generate the revenue to cover the costs.

2. The organizations are usually lacking personal's to drive innovations as people prefer to be paid more for their work.

Explanation:

Innovation is defined as the creation, development and implementation of a new product, process or service. The aim of innovation is to improve efficiency, effectiveness or competitive advantage. Innovation presents advantages and disadvantages to various players as listed above.

6 0

3 years ago

Suppose Dexter and Amy are the only members of a community that is trying to determine how much of a public good should be produ

Olin [163]

Answer:

c.

Explanation:

4 0

3 years ago

Which of these does not fall under the "marketplace" umbrella

adoni [48]

Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.

Below are the choices that can be found from other sources:

1.Taxation
2.e-commerce
3.physical places of business
4. Stock market

I think the answer should be e-commerce

7 0

4 years ago