E1-20 Below are the four underlying assumptions of generally accepted accounting principles. vorq noi Hoppanol At- OS TE sed Descriptions a. A common denominator is needed to measure all business activities. 199 b. Economic events can be identified with a particular economic body. Assumptions 1. 2. 3. 4. Economic entity Going concern Periodicity Monetary unit c. In the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely. to bas d. The economic life of a company can be divided into artificial time intervals for financial reporting. 000 Es Identify busin assumptions GAAP (LO1-7

E1-20 Below are the four underlying assumptions of generally accepted accounting principles. Identify busin assumptions GAAP (LO1