Balance sheet is prepared by following stock concept, whereas profit and loss account is prepared following flow

Question:

“Balance sheet is prepared by following stock concept, whereas profit and loss account is prepared following flow concept.” Discuss.

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

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

See More Books

Question Posted: Dec 15, 2023 11:39 PM

See More Questions

1) overview of the case 2) what are problems faced in financial plan 3) what is solution (suggestions) Let us start by telling you a story. It happened on a typical day of teaching. Luisa was...
From the following Balance Sheets, make out the Consolidated Balance Sheet of the group as at 31.12.2015: Additional information: (1) Net profit for 2015 (included above) : H Ltd. 40,000; S Ltd. ...
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...
Return to Better Mousetraps in Problem 18. Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV?...
A heating element in a stove is designed to dissipate 3 000 W when connected to 240 V. (a) Assuming that the resistance is constant, calculate the current in the heating element if it is connected to...
Proceed with caution when using implicit differentiation to find points at which a curve has a specified slope. For the following curves, find the points on the curve (if they exist) at which the...
Appreciate why nations trade. LO.1
Fruity Juices, Inc. produces five different flavors of fruit juice: apple, cherry, pomegranate, orange, and pineapple. Each batch of product requires processing in three departments (blending,...
Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance...
Annual report is much superior to the balance sheet. Explain.
Elaborate the concept of hybrid securities.
Vargas Corporation has the following cost records for June 2011. Instructions (a) Prepare a cost of goods manufactured schedule for June 2011. (b) Prepare an income statement through gross profit for...
Aircraft $B$ has a constant speed of $150 \mathrm{~m} / \mathrm{s}$ as it passes the bottom of a circular loop of 400-m radius. Aircraft $A$ flying horizontally in the plane of the loop passes...
A small inspection car with a mass of $200 \mathrm{~kg}$ runs along the fixed overhead cable and is controlled by the attached cable at $A$. Determine the acceleration of the car when the control...
An aircraft $P$ takes off at $A$ with a velocity $v_{0}$ of $250 \mathrm{~km} / \mathrm{h}$ and climbs in the vertical $y^{\prime}-z^{\prime}$ plane at the constant $15^{\circ}$ angle...
If each resistor in Figure P31.75 has resistance $R=5.0 \Omega$, what is the equivalent resistance of the combination? Data from Figure P31.75 wwwwww wwwww www www wwwww
Identify the proper point to recognize expense for each of the following transactions. a. Kat Inc. purchases on credit six custom sofas for $\$ 800$ each in June. Two of the sofas are sold for \(\$...
Prove Property CM of Theorem VSPM. Write your proof in the style of the proof of Property DSAM given in this section.
Kenneth Hubbard has prepared the following list of statements about managerial accounting and financial accounting. 1. Financial accounting focuses on providing information to internal users. 2....
(a) What is a statement of cash flows? (b) Brad Strath maintains that the statement of cash flows is an optional financial statement. Do you agree? Explain.
What questions about cash are answered by the statement of cash flows? Discuss.
Distinguish among the three activities reported in the statement of cash flows.
3. The nominal interest rate compounded monthly when your $7,000 becomes $11,700 in eight years is ________
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a...
Advanced Small Business Certifica Drag and Drop the highlighted items into the correct boxes depending on whether they increase or decrease Alex's stock basis. Note your answers- you'll need them for...

Balance sheet is prepared by following stock concept, whereas profit and loss account is prepared following flow

Question:

Step by Step Answer:

Stock concept and flow concept are two accounting principles that determine the preparation of financial statements specifically the balance sheet and ...View the full answer

Financial Accounting

Students also viewed these Business questions