Its True that when preparing financial statements the accountant assumes that the business will continue to operate indefinitely
Accountant uses the assumption of going concern which is the reason why Balance sheet is prepared and also the provision for the expenses are made.
True or false. when preparing financial statements the accountant assumes that the business will continue to...
Audited financial statements are based on the numbers supplied to the accountant by management. True False
Traditional format income statements are widely used for preparing external financial statements. True False
1. When preparing the financial statements of Somersby Ltd, the accountant found the following information: Opening balance of Retained Earnings $15,000; Interim Dividends paid $2,500 (from dividends payable); Profit earned $20,000; Dividends Declared $5,000. The closing balance of Retained Earnings for Somersby Ltd is: a. $7,500. b. $30,000. c. $27,500. d. $15,000. e. None of the above is correct.
What is the going concern assumption? Multiple Choice A) Assumes a company will go out of business if it can't pay its bills B) Assumes that a company will continue to operate indefinitely C) Assumes that a company will follow proper accounting rules D) Assumes that a company should continue to use the same accounting principles
AN ACCOUNTANT OR EXTERNAL FIRM CAN TAKE OVER THE RESPONSIBILITY FOR CAPTURING DATA AND PREPARING FINANCIAL STATEMENTS. WHAT WOULD YOU AS THE OWNER OF THE BUSINESS BE ABLE TO DO?
Lim Corporation is preparing its financial statements and has given the project to its new entry-level accountant, Sam. Indicate whether each of the following statements made by Sam is True or False. 1. The gain or loss from discontinued operations is placed in a separate category under other income or loss. True False 2. The gain or...
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: The operating cycle of a business The revenue recognition principle The matching principle Accrual basis accounting Cash basis accounting
Common financial statements present all the financial statements items as percentages of any item. True False
You have recently joined the board of an NFPO that has never had a public accountant involved in preparing its financial statements. Explain to the board the different ways a public accountant can be involved in the preparation of the external financial statements, and how the ways differ.
Which of the following statements is false? A)With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful. B)When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds. C)When preparing fund basis financial statements, any funds not reported separately are reported by function. D)In addition to the government-wide statements, governments are...