KTU B.TECH SECOND YEAR BUSINESS ECONOMICS [HS200] NOTE - MODULE 6 | IMPORTANT QUESTIONS


BUSINESS ECONOMICS [HS200] NOTE - MODULE 6

KTU B.TECH SECOND YEAR BUSINESS ECONOMICS [HS200] NOTE - MODULE 6  | IMPORTANT QUESTIONS,Business Economics Notes,Business Economics Questions,Business Economics important questions,Business Economics model questions,Business Economics second year notes,Business Economics second year questions,HS200 questions,HS200 notes

1.Describe Balance sheet preparation


Ans. A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. 

These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders. 

The balance sheet adheres to the following formula:

Assets = Liabilities + Shareholders' Equity

2.Define Accounting Interpretation

Ans. A statement clarifying how accounting standards should be applied. Accounting interpretations are issued by accounting standards groups, such as the Financial Accounting Standards Board (FASB), American Institute of CPAs (AICPA) or International Accounting Standards Board (IASB). 

Interpretations are generally not requirements, but rather outline best practices and give further explanation. By contrast, accountants are required to follow the accounting
standards that are in place.

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