Market Equilibrium is when the supply and demand curves intersect, the market is in equilibrium. This is where the quantity demanded and quantity supplied are equal. The corresponding price is the equilibrium price or market clearing price, the quantity is the equilibrium quantity.

8 0

4 years ago

Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qu

AysviL [449]

Answer:

Please refer below the assumption, principle, or constraint that most appropriately justifies these procedures and practices for each.

Explanation:

A Fair value changes are not recognized in the accounting records.

Measurement Principle (historical cost)

B Accounts receivable are recorded for sales on account rather than waiting until cash is received.

Accrual basis assumption

C Financial information is presented so that investors will not be misled

Materiality Full Disclosure Principle

D Intangible assets are capitalized and amortized over periods benefited

Measurement Principle (Historical Cost)

E Brokerage companies use fair value for purposes of valuing financial securities.

Measurement Principle (Fair value)

F Each enterprise is kept as a unit distinct from its owner or owners.

Economic Entity Assumption Periodicity Assumption

G All significant post-statement of financial position events are reported

Full Disclosure Principle

H Revenue is recorded at point of sale

Revenue Recognition Principle

I All important aspects of bond indentures are presented in financial statements

Materiality Full Disclosure Principle

J Rationale for accrual accounting

Revenue and Expense Recognition Principle

K The use of consolidated statements is justified

Economic Entity Assumption

6 0

4 years ago

Comparability and consistency are two terms used to describe information about different companies and information about differe

Aneli [31]

Answer:

Comparability : Inter company comparison , Consistency : Company time series comparison.

Explanation:

Consistency is quality of accounting information, enabling the same company's financial performance comparison over different periods of time. Consistency needs stable accounting methods used for a considerable period of time, unless their changing is necessary.

Eg : Using whichever method straight line or written down value - to calculate depreciation, should not be changed unless necessary.

Comparability is the quality of accounting information, enabling the company's financial performance comparison with other companies. It needs accounting methods following generally accepted accounting principles.

Eg: Accrual basis of accounting is generally standardised, acceptable and using other i.e cash basis won't enable company's comparison with others.

Consistency and comparability are very crucial to analyse company's financial performance - growth with time, growth as per industry standards respectively.

3 0

4 years ago