The annual final accounts of businesses are normally prepared on the assumption that the business is a

Question:

The annual final accounts of businesses are normally prepared on the assumption that the business is a going concern.

Explain and give a simple illustration of:

(a) the effect of this convention on the figures which appear in those final accounts

(b) the implications for the final accounts figures if this convention were deemed to be inoperative.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Costing And Management

ISBN: 9780198328230

2nd Edition

Authors: Riad Izhar, Janet Hontoir

See More Books

Question Posted: Jun 24, 2024 02:05 AM

See More Questions

The annual final accounts of businesses are normally prepared on the assumption that the business is a going concern. Required: Explain and give a simple illustration of: (a) the effect of this...
The annual final accounts of businesses are normally prepared on the assumption that the business is a going concern. Required: Explain and give a simple illustration of (a) The effect of this...
I just want to ensure I am on the right track. The question I would like an answer to is "Should HT be assigned a going concern classification ? why or why not? Consider whether the amounts in...
Which of the following is not one of the techniques used in webmining? a. Content mining b. Structure mining c. Server mining d. Usage mining e. Data mining Which of the following would you use to...
Suppose that firms operate in a competitive market, attempt to maximize profits, and only use one factor of production. Then we know that for any changes in the input and output price, the input...
21. Theinversemarketdemandisgivenbyp(y)=26y. Supposethereareonlytwofirmsand bothofthemhavethecostfunctionci(yi)=2yi.Thefirmsareplayingtheinfinitelyrepeated...
P 5-2 Computations (upstream sales) Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016. Intercompany purchases and sales and inventory data for 2016,...
Below are summary numbers from reformulated balance sheets for 2007 and 2006 for Kimberly-Clark Corporation, the products company, along with numbers from the reformulated income statement for 2007...
Gregory Mining LLC shows the following information on its 2014 income statement: sales = $317,800; costs = $211,400; other expenses = $18,500; depreciation expense = $31,200; interest expense =...
Historical cost has been described as one of the fundamental assumptions underlying financial accounting. Required: An explanation of: (a) What is meant by historical cost; (b) The advantages of...
(a) The auditors report to the shareholders of a public limited company included the following two paragraphs: The accounts have been prepared on a going concern basis and the validity of this...
Assuming Scanner is a valid class that implements AutoCloseable, what is the expected output of the following application? A. Opening!Walls B. The code does not compile because of line p1. C. The...
Question 7 Two objects, of masses 3 and 4 kg, are hung from the ends of a stick that is 70 cm long and has marks every 10 cm, as shown above. If the mass of the stick is negligible, at which of the...
Since they do not have enough saved, Rachel and John would like to consider retiring later. Create a new timeline and recalculate all of the relevant values to determine at what age Rachel and John...
Problem 6 Find the partial derivative with respect to x for the following functions: (a) p = 56 (b) y(x)=56-4x (c) m = r (d) q= x (e) f(x) =x3 (f) g(x,y) = xy 2 (g) h(x,y) = Ax1/2y1/2, where A is a...
Consider the information in the file named Cost Functions of the Firm (also presented above). Please read that file carefully before answering this and the following questions. The fixed cost of...
On January 1, 2022, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872,000. The fair value of the noncontrolling interest at the acquisition date was $218,000....
Wayne Kaegi's Verde Vineyards in Oakville, California, produces three varieties of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Russel Hansen, has identified the following activities as...
As water moves through the hydrologic cycle, water quality changes are common because of natural phenomena or anthropogenic pollution. Using Figure 11.1, describe how water-quality changes occur...
Marigold industries had the following inventory transactions occur during 2020: 2/1/20 Purchase 51 units @ $46 cost/unit 3/14/20 purchase 98 units @ $49 cost/unit 5/1/20 purchase 68 units @ $53...
In this investment portfolio simulation, you and the bean counters, will invest and manage a fictitional amount of $ 1 , 0 0 0 , 0 0 0 during next three weeks. The simulation includes two fictitional...
Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2018 fiscal year: Cost Retail Beginning inventory...

The annual final accounts of businesses are normally prepared on the assumption that the business is a

Question:

Step by Step Answer:

Accounting Costing And Management

Students also viewed these Business questions