The purpose of your Accounting Policy Manual is to document the financial principles and policies governing your company’s accounting practices.

True

Your Accounting Policy Manual and associated accounting procedures are intended to satisfy the documentation requirements for an Accounting Management System

Your Financial Accounting principles and policies provide:

• A foundation for a system of accounting internal controls
• Guidance in current financial activities
• Criteria for decisions on appropriate accounting treatment.
• Accounting officers with direction and guidance in connection with those accounting transactions, procedures, and reports that should be uniform throughout the Company.

When consistently applied throughout the company, your accounting principles and policies assure that the various financial statements issued by your company accurately reflect the results of company’s operations.

True

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