Easily Remove Alternative Choice into the Financial Statement (Personal)

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How to Remove Alternative Choice into the Financial Statement (Personal)

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whats up you guys im dan this is frugal not cheap today well look at personal finance software in 2022 why im ditching quicken and what im moving to [Music] so first we should talk about what the point of personal finance software is in the first place and that really is uh just in order to keep track of things right so and to to make things easier by aggregating all the information across your various accounts so going back you know my my personal uh history with this kind of software dates back to 2006 at that time i was working as a non-profit credit counselor and i was helping people put together budgets and you know work on their financial situation and at the same time i was seeing that i wasnt really making a whole had a lot of headway in my own so i decided to get my financial act together and i got a piece of software called microsoft money its a great piece of software we can see here an old screenshot from it and you know this is uh i think the screenshot says june 2

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When there is a choice of equally acceptable accounting methods the firm should use the one that is least likely to overstate income or assets?

Conservatism convention - when there is a choice of equally acceptable accounting methods, the firm should use the one that is least likely to overstate income or assets. Industry practices convention - accepted industry practices should be followed even if they differ from GAAP.

What is the basic accounting principle that when choosing between two solutions the one that will be least likely to overstate assets and income should be picked?

Conservatism principle: when choosing between two solutions, the one that will be least likely to overstate assets and income should be picked.

How do you stop financial statement manipulation?

Internal Controls to Prevent Financial Statement Fraud Segregation of Duties. Implement a Reconciliation Process. Use an External Auditor. Provide Board of Directors Oversight. Review Inventory, Journal Entries, and Electronic Transfers. Set a Strong Tone at the Top. Set Up a Fraud Hotline.

When the accountant has to choose between two acceptable alternatives the accountant should select the alternative that will report less profit?

10. When the accountant has to choose between two acceptable alternatives, the accountant should select the alternative that will report less profit, less asset amount, or a greater liability amount. This is based upon which principle/guideline? * The Right answer is Conservatism is used in order to break a tie.

Why do we need to eliminate intercompany transactions?

Intercompany eliminations cancel intercompany transactions that dont impact the parent companys net assets. This ensures that the parent companys financial statements can be accurately consolidated. Otherwise, the parent companys balance sheet might become inflated (well discuss specific scenarios below).

What should be eliminated in consolidation?

In the preparation of consolidated financial statements, intra-entity balances and transactions shall be eliminated. This includes intra-entity open account balances, security holdings, sales and purchases, interest, dividends, and so forth.

When the accountant has to choose between two acceptable alternatives?

Conservatism. If a situation arises where there are two acceptable alternatives for reporting an item, conservatism directs the accountant to choose the alternative that will result in less net income and/or less asset amount.

What helps guide the accountant when doubt exists between two alternatives associated with the lower of cost or market for inventory?

What is Conservatism? The conservatism principle says if there is doubt between two alternatives, the accountant should opt for the one that reports a lesser asset amount or a greater liability amount, and a lesser amount of net income.

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