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(pdf) Advanced Financial Accounting Solution

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Added on  2021-06-16

(pdf) Advanced Financial Accounting Solution

   Added on 2021-06-16

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(pdf) Advanced Financial Accounting Solution_1
1By student name ProfessorUniversityDate: 24th May2018.1 | P a g e
(pdf) Advanced Financial Accounting Solution_2
2ContentsASSESSMENT PART A.............................................................................................................................3ASSESSMENT PART B.............................................................................................................................5ASSESSMENT PART C.............................................................................................................................6ASSESSMENT PART D.............................................................................................................................7References...................................................................................................................................................92 | P a g e
(pdf) Advanced Financial Accounting Solution_3
3ASSESSMENT PART AThe data that is revealed with the financial statements through the P/L Account, the balance sheetand the cash flow statement helps the planner and the investors to lead the investment resolution.Yet, the overall thing that is actually shown in the financial statements might not be of help tothe end users and might not seem to be required for the decision making causes[ CITATION Biz17 \l1033 ]. It is necessary to guide the users of financial statements to provide them with properadvice so that they can properly plan their investment and earn revenue. There are few minimalfinancial and non financial data that is required to be a part of the financials so that takingdecision is easier. Few of the pre perquisites for these sort of information include:1.Clarity: The data that is being stated and shown in the financial statements ought to betransparent and should not lead to uncertainity in the mentality of the end user. It shouldreflect single sense and the user should be able to make out and understand theinformation in a better way.It should not be ambious, fake, incorrect, inaccurate, useless,insensible, as well as needless. Here, user refers to the person having the basicunderstanding of accountancy, finance, and tax, and also possesses the business intellectand sagacity to study and understand the financial statements[ CITATION Def17 \l 1033 ].Incase the information that is stated in the financial statements are unambigious, the userwould be able to conclude from the data stated and hold the decisions to spend or not. Ifany part of the financial statements has information that is difficult, then the same shallbe carried on by the required notes and disclosures to escape uncertainity andmisunderstanding.2.Relevancy: The information given shall be pertinent to the end user and should be addingworth while in making decision. It should not be mentioned for the purpose of disclosureand should not be unclear and needless as it objects the only objective of the conceptualframework of accounting. The users of the financial statements should be conscious ofthe knowledge that the huge and much quantity of information only consists of thequality without adding worth. The information sought should be relevant as whenrequired and need not be doubtful. It shall reflect true and fair view and shall be helpfulfor decision making for the investors. Hence, it should be clear, accurate, unquestionableand the user should be capable to discover out correct and exact inferences out of thesame[ CITATION Bae17 \l 1033 ].3 | P a g e
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