1-1 Why should business be regarded as an entity separate and distinct from the owner?

So they can separate the liabity of the business from the liablity of the individual owner(s).

A business can have liablity for debts and also for lawsuits for negligence or illegal actions.

1-2 What information can we get from a Balance Sheet? Income Statement?

1-3 Why is "timeliness" needed in financial statements preparation?

1-4 What is "neurality" in financial reporting?

1-5 What comprises the Balance Sheet? Enumerate and explain.

1-6 State the basic accounting equation.

1-7 What comprises the Income Statement? Enmute and explain.

1-8 State the expanded accounting equation?

1-9 Explain briefly the following assumptions

a) Separate Entity Assumption

b) Continuity or Going-Concern Assumption

c) Time-Period Assumption

1-10 How is capital and drawing accounts be given account titles?

Quizzers

Instruction: Under the "Business Entity Concept" which of the following are considered as business transaction and events . Place "check mark" on the space provided

1 Salaries paid to employees

2 Salaries paid to house helpers

3 Cash withdrawn from the business

4 Payment of taxes and licenses to the government

5 Payment of personal accident insurance

6 Payment of personal loan to bank

7 Incurred inventory loss due to theft and robbery

8 Tuiton fees for the children

9 Repair of a car owned by business

10 Store building was razed by fire.

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