A.Select an Annual report of a Company for the latest available two periods and use the financial statements of the selected company to answer the given questions.Time - 48 hoursPls...

Question A
Accounting is important for describing accounting professionals. It is considered as important tool for informed decision-making in various facets of business. The primary objective of accounting is to provide accurate and reliable financial information about economic activities of entity. The information facilitates effective management and this requires assessing financial health of the organization and ensures compliance with regulatory requirements. Numerous parties use accounting information for different purposes. Management focuses on financial statements to get information about performance to identify areas for improvement and making strategic decisions. Investors and creditors analyze financial reports to assess profitability and solvency of business for investment and lending decisions. Government agencies employ accounting data for taxation and regulatory purposes for ensuring businesses follows legal standards (Goyal and Kumar, 2021). Employees use financial information to assess stability and sustainability of employment. Customers and suppliers focus on accounting details to evaluate financial stability of company affecting business relationships. The broad accessibility and usability of accounting information makes it important for stakeholders across sectors. This requires focusing on informed decisions that contribute to overall economic landscape.
Question B
Accounting policies and principles is important for maintaining consistency, transparency and reliability in financial reporting. The guideline provide framework for companies to prepare financial statements in standardized manner for ensuring comparability and aiding stakeholders for making informed decisions.
Three accounting policies that are used by companies that demonstrate importance includes:
1. Revenue Recognition Policy:
· Revenue recognition policies describes when and how revenue is recognized. It can help in describing accurate picture of financial performance of the company. It helps in preventing manipulation and ensures that revenue is recognized that is earned and realized.
2. Depreciation Policy:
· Depreciation policies defines allocation of cost of tangible assets for useful lives. The policy is essential for reflecting true cost of using assets in generating revenue (Xu et al. 2018). It helps in presenting fair and consistent valuation of assets on balance sheet. It enabling...