Discuss the significance of the following assumptions in the preparation of an entitys financial statements: (a) Entity

Question:

Discuss the significance of the following assumptions in the preparation of an entity’s financial statements:

(a) Entity assumption

(b) Accrual basis assumption

(d) Period assumption

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

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

See More Books

Question Posted: Jun 18, 2019 09:52 AM

See More Questions

List and define the fundamental and enhancing characteristics of financial information.
Classify each of the following activities as being either operating, investing or financing for the purpose of preparing a statement of cash flows. Indicate whether there is an inflow (I) or outflow...
Month-end balance sheet amounts for the legal practice of Adam Booth, a local lawyer, for 3consecutive months of 2016 are shown below. The information is complete except for the balance in the...
Wansley Portal Inc., a large Internet service provider, is evaluating the possible acquisition of Alabama Connections Company (ACC), a regional Internet service provider. Wansley's analysts project...
Using the LDV factorization for the matrices you found in parts (a)-(g) of Exercise 1.5.32. solve the corresponding linear systems Ax = b, for the indicated vector b. (a) (b) (c) (d) (e) (f) (g) 132...
Among all smooth, simple closed curves in the plane, oriented counterclockwise, find the one along which the work done by is greatest. F = 1 ( 1 x 0 + 3 i + xj
3 Observe el continuo de servicio en la figura 12-3. Diga en qu difieren los siguientes puntos del continuo en funcin de la consistencia: a) sal, b) automvil, c) agencia de publicidad y d) enseanza.
The Brewer Company manufactures and sells pens. Currently, 5,400,000 units are sold per year at $ 0.60 per unit. Fixed costs are $ 860,000 per year. Variable costs are $ 0.40 per unit. Consider each...
At December 31, 2018, the accounting records of Hercules Manufacturing, Inc. contain the following items: Accounts Payable Land Building Notes Payable Retained Earnings $ 12,000 Accounts Receivable $...
Turner Woodworking, LLC is a small family owned manufacturing business. They have three primary products: Birdhouse Porch swing Freestanding hammock All products are made within their existing...
Moonshine Enterprises hired an accountant at the rate of $1000 per week. The person is to commence duty on 1 February. Explain if the business has a liability in respect of the accountants salary as...
Distinguish between the concepts of consistency and comparability and discuss if the same accounting method should always be applied consistently in financial statements.
You are working in the finance department of a school. The school is 15 years old. Identify whether the following items are capital or revenue expenditure. 1. A desk 2. Payments to a handyman for...
int rFibNum(int a, int b, int n) { if(n == 1) return a; else if( n == 2) return b; else return rFibNum(a,b, n-1) + rFibNum(a, b, n-2); } In the code above; a) how many base cases are there? b) what...
Watch the Super Nanny (i.e., Jo Frost) episode "The Orm Family" (Season 1, Episode 3) and answer the following questions. Unless otherwise specified, your answers should focus on Declan (the 3 year...
2. Suppose Ford officials were asked to justify their decision. What moral principles do you think they would invoke? Assess Ford's handling of the Pinto from the perspective of each of the moral...
2. You have been asked to design the proto-type of an Automatic Grocery Vending Machine 10 (AGVM) for the super store. Automatic Grocery Vending Machine (AGVM) is a machine where different types of...
1. What does Porter's 5 Forces analysis strategy do? 2. Do most people agree Why? or disagree with this aspect Why? Here is the reference video, https://www.youtube.com/watch?v=Dfp23xSqpdk 3. What...
Aluminum rivets used in airplane construction are made slightly too large for the rivet holes to be sure of a tight fit. The rivets are cooled with dry ice (78.5C) before they are driven into the...
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
Comprehensive Project for WACC and NPV Company A is considering a 4 - year project. They own a piece of land that could be sold for $ 1 0 0 , 0 0 0 . They hired an engineer to evaluate it and she has...
AR by Company To see companies within a particular country, elther click on that country or use the search field in the upper left corner. To return to the map's global view, click on the Home icon...
can anyone help find a news article discussing a corporations use of debt financing? Often times the financial news media will report when a company chooses to issue new bonds or take new loans.

Discuss the significance of the following assumptions in the preparation of an entitys financial statements: (a) Entity

Question:

Step by Step Answer:

a Entity Assumption If the transactions of an entity are to be recorded classified and summarised into financial statements the accountant must be able to identify clearly the boundaries of the entity ...View the full answer

Accounting

Students also viewed these Business questions