Irregular Items and Horizontal Analysis
Not what you're looking for?
1. What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the company is responsible for the application of a change in an accounting principle? Why?
2. What is a horizontal analysis? What is the value in using horizontal analysis? Why would a company use horizontal analysis? What does this analysis tell you?
Purchase this Solution
Solution Summary
This solution discusses irregular items, changes in accounting principles, and who in the company responsible for the application of a change in accounting principle. This solution also explains a horizontal analysis, the value in using this type of analysis, and how management can use the information obtained from a horizontal analysis. Detailed explanations are provided.
Solution Preview
1. Irregular items generally fall into one of two main categories, which are irregular items from discontinued operations and irregular items from extraordinary events. An irregular item from discontinued operations is caused from a discontinuance of product lines, segments, divisions, etc. When a company eliminates a major activity, the losses incurred become an irregular item. When there is an unusual, infrequent event, it is considered an irregular item caused by an extraordinary ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.