10. The continuation of an accounting entity in the absence of evidence to the contrary is...
10. The continuation of an accounting entity in the absence of evidence to the contrary is an example of the:
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entity concept. |
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consistency principle. |
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going concern assumption. |
Homework Answers
The continuation of an accounting entity in the absence of evidence to the contrary is an example of the: going concern assumption
Entity concept: As per this accounting concept, a business organization is treated separately from its owners. E.g. The money withdrawn by the sole proprietor is shown as drawings and the money introduced to the business is treated as capital.
Consistency principle: As per this principle, the same accounting method and policies should be consistently followed in all accounting periods. This is to ensure the comparability of financial statements of various accounting periods.
Going concern assumption: It is the assumption that the entity will continue to operate for the foreseeable future. The assets are recorded at cost based on this principle.
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10. The continuation of an accounting entity in the absence of
evidence to the contrary is...
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Question 1 Explain the following accounting concepts: (10 marks) a. Business entity concept b. Matching concept c. Going concern d. Accruals concept e. Consistency concept
Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or...
Identify the accounting assumption or principle that is
described below.
(a)
select the accounting assumption or principle
Going Concern AssumptionMonetary Unit AssumptionPeriodicity
AssumptionHistorical Cost PrincipleEconomic Entity AssumptionFull
Disclosure Principle
Is the rationale for why plant assets are not reported at
liquidation value. (Note: Do not use the historical cost
principle.)
(b)
select the accounting assumption or principle
Historical Cost PrincipleGoing Concern AssumptionEconomic Entity
AssumptionFull Disclosure PrincipleMonetary Unit
AssumptionPeriodicity Assumption
Indicates that personal and business record-keeping should be
separately maintained.
(c)...
1 Since cost is a reliable measure, the cost principle holds that the accounting records should...
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help please Match the statements below with the items below: a.) Economic entity assumption b.) Time...
help please
Match the statements below with the items below: a.) Economic entity assumption b.) Time period Assumption c.) Full Disclosure principle d.) Cost principle e.) Revenue recognition principle e.) Rey Principle Principle 1.) Monetary unit assumption 8.) Going concern assumption h.) Matching principle 1.) Consistency j.) Reliability - A company uses the same accounting methods from year to year. The information is free of error and bias. The economic life of a business can be subdivided into months, quarters...
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Identify the accounting assumption or principle that is
described below.
(a)
select the accounting assumption or principle
Going Concern AssumptionMonetary Unit AssumptionPeriodicity
AssumptionHistorical Cost PrincipleEconomic Entity AssumptionFull
Disclosure Principle
Is the rationale for why plant assets are not reported at
liquidation value. (Note: Do not use the historical cost
principle.)
(b)
select the accounting assumption or principle
Historical Cost PrincipleGoing Concern AssumptionEconomic Entity
AssumptionFull Disclosure PrincipleMonetary Unit
AssumptionPeriodicity Assumption
Indicates that personal and business record-keeping should be
separately maintained.
(c)...
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Match the accounting principle on the left with the appropriate statement on the right. Entity assumption a. All relevant information must be presented in the financial statements. Materiality b. X Corp. uses FIFO every year to value its inventory. Full disclosure c. Carefully make estimates to avoid overstating assets or net income. Consistency d. Sales are recorded when the product is provided, not when we get paid. Historical cost e. The business plans to continue indefinitely. Conservatism f. John's personal...
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