so today I gave my teacher some sacs to correct and got slammed for my theory responses. so i was wondering if any one could check them out and give me some advice and expression so that i dont waste time getting too wordy with them or by not saying enough.
1.on april 1 2010, mall took one violin as a present for his daughter with a cost price of $580. His accountat stated that this transaction must be stated. explain refferring to a qualitative characteristic why this is correct.
response: Relevance demands that all information which is included in financial reports should be useful to decision-making and relevant to the entity. in this case as a violin ($580) is taken out of stock control the drawing should be recorded to avoid the overstating of assets.
2. Which qualitative characteristic requires stock loss to be reported? justify.
response: relevance - since this document will reduce stock control account it should be reported for in the general journal as it will be useful to the decision-making of users.
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