Questions from College Accounting

Q: 1. What would cause corporate management to obtain cash by issuing

1. What would cause corporate management to obtain cash by issuing bonds instead of selling stock? 2. Which type of bonds would give management greater flexibility in formulating and controlling a cor...

Q: What are the two most important bodies or organizations involved in developing

What are the two most important bodies or organizations involved in developing generally accepted accounting principles in the United States?

Q: Why is it desirable to have a set of fundamental concepts to

Why is it desirable to have a set of fundamental concepts to be used in developing accounting standards and rules?

Q: How will U.S. companies be affected by IFRS?

How will U.S. companies be affected by IFRS?

Q: What is meant by the concept of neutrality in accounting?

What is meant by the concept of neutrality in accounting?

Q: Explain the qualitative characteristic of comparability.

Explain the qualitative characteristic of comparability.

Q: How is the matching concept related to the accrual basis of accounting

How is the matching concept related to the accrual basis of accounting?

Q: It can be argued that the cost principle is dependent on the

It can be argued that the cost principle is dependent on the going concern assumption. Why?

Q: Explain the purpose of the allowance method of accounting for losses from

Explain the purpose of the allowance method of accounting for losses from uncollectible accounts.

Q: Suppose that the estimate of uncollectible accounts is based on the aging

Suppose that the estimate of uncollectible accounts is based on the aging of accounts receivable and that the Allowance for Uncollectible Accounts has a credit balance before the adjustment is made. E...