In the financial statements issued by large companies like Imperial Chemical Industries (ICI) the amounts stated are

Question:

In the financial statements issued by large companies like Imperial Chemical Industries (ICI) the amounts stated are rounded off to the nearest million pounds. The reason for this is:

(a) The materiality concept

(b) To keep details secret from rival companies

(d) Because this is currently fashionable

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

See More Books

Question Posted: Aug 31, 2023 02:25 AM

See More Questions

Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
In the dynamic and expanding urban environment of "Slothsberg", a new highway ("Snailpace Highway") is to be constructed over the existing "Dillydally Highway". The following conditions apply to the...
In the current year, Jose receives a liquidating property distribution from Valenzuela Corporation. The basis of the property distributed is $25,000. What is the tax effect of the distribution for...
(Cost control evaluation) The Costa Mesa Concrete Company makes precast con crete steps for use with manufactured housing. The plant had the following 1996 budget based on expected production of...
8. The S&R index spot price is 1100, the risk-free rate is 5%, and the continuous dividend yield on the index is 2%. a. Suppose you observe a 6-month forward price of 1120. What arbitrage would you...
Frequency response data for a process are tabulated below. These results were obtained by introducing a sinusoidal change in the controller output (under manual control) and recording the measured...
Ahmad of XYZ company has determined that it takes only 3 days to receive the order of the row material after the placement of the order and the Daily usage= 150 unit per day. When should he order...
Identify three of the following accounting concepts as justification for depreciating non-current assets: (i) Realisation (ii) Matching (iii) Neutrality (iv) Substance over form (v) Prudence (vi)...
The prudence concept is the compelling reason for which of the following accounting treatments: (a) Reporting as an asset the unsold portion of goods purchased for sale (b) Accounting for the...
List three types of internal reports and explain how each is used. List three types of external reports and explain how each is used.
Stefney Christian Date: 06/26/2023 To: From: New England Patriot Subject: Analysis of Aircraft Purchase vs. Chartering Decision I've done a thorough analysis of the decision to buy or charter a plane...
The Giovonis' monthly income is $9000. The have 14 remaining payments of $269 on a new car and 16 payments of $70 remaining on their living room furniture. The taxes and insurance on the house are...
2. Determine the following inverse z-transforms using partial fraction expansion method. a. The sequence is right sided (causal). 1 z 14z 2 + 4z-3 X(z) = 11 1 Z-1 13 + 2-2 8 1 -3 4Z b. The sequence...
(4 pts) 1. Find all vertical and horizontal asymptotes of the function f(x) (You do NOT need to show the limit work) 2x2-2 x+4x+3
Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 532,000 units (packages of 6 coasters). In the coming year (year 1), the...
Jirout and Klahr (2012) were interested in understanding how to characterize and study curiosity in children. In their article, they note, "Although curiosity is an undeniably important aspect of...
The percentage of completion and completed contract methods are described in the FASB ASC. Search the codification to find the paragraphs covering these topics, cite them, and copy the results.
During 2017, Doug incurs the following deductible expenses: $2,300 in state income taxes, $3,000 in local property taxes, $800 in medical expenses, and $2,000 in charitable contributions. Doug is 33,...
During 2017, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses.................................................. $ 8,000 Investment interest...
Assume all the same facts as in Problem I:7-51 except that James salary income is $130,000 instead of $70,000 and that he does not make the election. Compute James taxable income for the year. Data...
A proposed $2.5 M investment in new equipment at a 100 MG/y M&Ms factory will save the plant $800,000/y in energy costs. Assuming an annual interest rate of 5%/y (compounded annually), and an...
Brief Exercise 10-7 Coronado Company obtained land by issuing 2,250 shares of its $14 par value common stock. The land was recently appraised at $103,240. The common stock is actively traded at $44...
The following schedule reconciles Cele Co.'s pretax GAAP income Pretax GAAP income Nondeductible expense for fines Tax deductible depreciation in excess of GAAP depreciation expens Taxable rental...

In the financial statements issued by large companies like Imperial Chemical Industries (ICI) the amounts stated are

Question:

Step by Step Answer:

a The...View the full answer

Financial Accounting An Introduction

Students also viewed these Business questions