ACCT410 Unit 1 DB - The Business of Accounting

This would apply if there are two reporting

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under the basic accounting principles and guidelines. This would apply if there are two reporting alternatives that are acceptable for reporting the item and the accountant is directed to decide on the alternative that will have a completed income and asset amount that is less. This would assist an accountant in breaking any ties . The one big unacceptable circumstance also is under the basic accounting principles and guidelines and is called Full Disclosure Principle . This basically states that if there is any information that would be considered important to a lender or investor on the financial statements that the statement should have the information disclosed on it or the statement notes should include such information. By researching and supplying the above information on Randy’s small business and whether his decision to omit $5,000 of asset and liability that was received in the final week of the year on the financial statements to show to a lender for a possible loan it is easy to conclude that it should not be done. Although under the basic accounting principles and guidelines that
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