Question

What are the arguments for and against the all-inclusive approach to profit measurement?

What are the arguments for and against the all-inclusive approach to profit measurement?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans: All-inclusive approach to profit measurement:

For: 1. it is simple to prepare as there is no requirement of distinction of items under several heads

2. it is easy to window dress company financials as abnormal items gets merged with normal items. Small Impacts willn't affect company's shares price.

3. All risk and reward are shared with the shareholders.

Against: 1. it is agains the principle of full disclosure.

2. Abnormal items gets merged with normal operation those correct picture of teh business couldn't be reflected.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are some good arguments for the active approach and what are some good arguments for...
What are some good arguments for the active approach and what are some good arguments for the passive approach?
what are the arguments that can be made for and against the cashless debit card program...
what are the arguments that can be made for and against the cashless debit card program based on an opposing ethical framework(consequentialism approach)?
What are the arguments for and against an emissions tax?
What are the arguments for and against an emissions tax?
Arguments for fair value and arguments against fair value
Arguments for fair value and arguments against fair value
The accounting profession has adopted a modified all-inclusive concept to income reporting. Using this approach companies...
The accounting profession has adopted a modified all-inclusive concept to income reporting. Using this approach companies report unusual or irregular items as a part of net income. What are these items and they are they reported separately on the income statement?
What are the arguments in favor of and against pornography? Are either positions empirically supported? Are...
What are the arguments in favor of and against pornography? Are either positions empirically supported? Are the arguments against pornography compelling enough to censor it or is censorship a larger danger than accessible pornography? Why, or why not?
What are the economic arguments both for and against increased migration into Australia?
What are the economic arguments both for and against increased migration into Australia?
What are some Deontology arguments FOR and AGAINST genetic manipulation and engineering of humans???
What are some Deontology arguments FOR and AGAINST genetic manipulation and engineering of humans???
In William Poole's 'Is Inflation Too Low?' what were the three arguments against the notion that...
In William Poole's 'Is Inflation Too Low?' what were the three arguments against the notion that inflation prevents dynamic inefficiency and two arguments against the idea that inflation preserves the FED's ability to pursue expansionary policy?
review the arguments for and against social responsibility?
review the arguments for and against social responsibility?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT