Here are some of the accounting concepts relating to the conceptual framework discussed in this chapter: 1.
Question:
Here are some of the accounting concepts relating to the conceptual framework discussed in this chapter:
1. Going concern assumption
2. Economic entity concept
3. Full disclosure
4. Cost
5. Cost constraint
6. Materiality
Identify by number the accounting assumption, qualitative characteristic, concept, or constraint that describes each situation below. Do not use a number more than once.
(a) _______is why land is not reported at its liquidation value. (Do not use item 4, cost.)
(b) _______indicates that personal and business record-keeping should be kept separate.
(c) _______ensures that all relevant financial information is reported.
(d) _______requires that GAAP be followed for all significant items.
(e) _______indicates the value at which an asset is recorded when acquired.
GAAPGenerally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....
Step by Step Answer:
a 1 Going concern assumptio...View the full answer
Principles Of Financial Accounting
ISBN: 9781118757147
1st Canadian Edition
Authors: Jerry J. Weygandt, Michael J. Atkins, Donald E. Kieso, Paul D. Kimmel, Valerie Ann Kinnear, Barbara Trenholm, Joan E. Barlow
