Question

Q 2.24: jacob and marla were both presented with a complex accounting issue that neither had seen before. marla was able to look at the problem and come up with a reasonable solution, but jacob was not. what is the difference between marla and jacob?

Answer 1

One possible difference between Marla and Jacob is that Marla has a greater understanding of the Conceptual Framework of Accounting, the principles and assumptions, such as “going concern” and “historical cost”, that govern accounting methods. Applying these principles rigorously to new problems in accounting can allow one to reasonably solve accounting issues without detailed prior knowledge of the problem.