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of the following situations. Note: The same assumption can be used multiple times. Inflation affects the amounts that Ricoh must pay for their printers. To

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of the following situations. Note: The same assumption can be used multiple times. Inflation affects the amounts that Ricoh must pay for their printers. To show the effects of inflation, net income would drop by $3,000. Which assumption provides guidance on the reporting decisions in this situation? 1. Historical-cost assumption 2. Going-concern assumption If Rainbow Colour Supplies Inc. had to liquidate its assets, their value would be $400,000 less than the carrying amounts of the assets. Which assumption provides guidance on whether this amount should be reported in the financial statements? 3. Separate-entity assumption 4. Stable-monitary-unit assumption The vendor, Carla Parshini, organizes their business as a corporation. They wonder if the $5,200 on their personal bank account can be presented in the balance sheet of the company. Which assumption provides guidance here? Identify the accounting assumption that best applies to each of the following situations. Note: The same assumption can be used multiple times. Inflation affects the amounts that Ricoh must pay for their printers. To show the effects of inflation, net income would drop by $3,000. Which assumption provides guidance on the reporting decisions in this situation? 1. Historical-cost assumption 2. Going-concern assumption If Rainbow Colour Supplies Inc. had to liquidate its assets, their value would be $400,000 less than the carrying amounts of the assets. Which assumption provides guidance on whether this amount should be reported in the financial statements? 3. Separate entity assumption 4. Stable-monitary-unit assumption The vendor, Carla Parshini, organizes their business as a corporation. They wonder if the $5,200 on their personal bank account can be presented in the balance sheet of the company, Which assumption provides guidance here

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