Hutch Corporation is at risk of going bankrupt. It is planning to sell the majority of...
Hutch Corporation is at risk of going bankrupt. It is planning to sell the majority of its machinery at a heavily discounted rateand may need to shut down operations.This information is not presented in the financial statements. The business does not fulfill:
Select one:
a. Historicalcost assumption
b. Economicentity assumption.
c. Going concern assumption
d. Monetary unit assumption
Homework Answers
The going concern principle is the assumption that an entity will remain in business for the foreseeable future.
In the given case a material information that can lead to business closure is not presented which can imply that the business would not be able to continue in the future, thus the going concern assumption is not fulfilled.
Add Answer to:
Hutch Corporation is at risk of going bankrupt. It is planning to sell the majority of...
Mr. Ryan is the owner and chief executive officer of Briarfield Corporation. Mr. Ryan personally owns...
Mr. Ryan is the owner and chief executive officer of Briarfield Corporation. Mr. Ryan personally owns a house, automobiles and investments in various companies. However, his personal assets will not be included among the land, building and investments reported on the financial statements of Briarfield Corporation. This is an application of: Select one: a. Monetary unit assumption b. Neutrality assumption c. The concept of economic entity d. Going concern assumption
Select the name of the accounting assumption, principle or qualitative characteristic that you believe should be...
Select the name of the accounting assumption, principle or qualitative characteristic that you believe should be written in place of the dotted blank space. "The ............ assumption implies that the numbers contained in financial statements are not periodically adjusted for inflation, regardless of whether the economic entity is expected to remain in business for a long time." Periodicity Going concern Monetary unit Comparability Economic entity None of the answer choices is correct
15) Accounting is an information and measurement system that does all of the following except: A)...
15) Accounting is an information and measurement system that does all of the following except: A) Identifies business activities. B) Records business activities. C) Communicates business activities. D) Eliminates the need for interpreting financial data. E) Helps people make better decisions. 16) External users of accounting information include all of the following except: A) Shareholders. B) Customers. C) Purchasing managers. D) Government regulators. E) Creditors. 17) A corporation is: A) A business legally separate from its owners. B) Controlled by...
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each...
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (items a through k may be used more than once or not at all.) a. Economic entity assumption g. Expense recognition principle b. Going concern assumption h. Full disclosure principle C. Monetary unit assumption i. Relevance characteristic d. Periodicity assumption j. Faithful representation characteristic e. Historical cost principle k. Consistency characteristic f. Revenue recognition principle 1....
1. The primary objective of financial accounting is:
1. The primary objective of financial accounting is: A. To serve the decision-making needs of internal users. B. To provide financial statements to help external users analyze an organizations C. To monitor and control company activities. D. To provide information on both the costs and benefits of looking after products and benefits of looking after products and services. 2. A CPA owns a large home and she has divided the second floor into two separate units: one her personal residence and the other rented out...
Match each item characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards...
Match each item characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards with a description below. 1. select an option Going Concern AssumptionPeriodicity AssumptionMaterialityEconomic Entity AssumptionMonetary Unit AssumptionRelevanceCost ConstraintComparabilityFull Disclosure PrincipleHistorical Cost PrincipleConsistencyFaithful Representation Items not easily quantified in dollar terms are not reported in the financial statements. 2. select an option ...
28. The American Institute of Certified Public Accountants (AICPA) continues to be involved in all of...
28. The American Institute of Certified Public Accountants (AICPA) continues to be involved in all of the following except a. developing and enforcing professional ethics. b. developing auditing standards. c. providing professional education programs. d. all of the above. 29. Which of the following pronouncements were issued by the Accounting Principles Board? a. Accounting Research Bulletins b. Opinions c. Statements of Position d. Statements of Financial Accounting Concepts 30. What is not a source of pressure that may influence the...
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each...
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) a. Economic entity assumption g. Expense recognition principle b. Going concern assumption h. Full disclosure principle c. Monetary unit assumption i. Relevance characteristic d. Periodicity assumption j. Faithful representation characteristic e. Understandability characteristic k. Verifiability characteristic f. Revenue recognition principle ____ 1....
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with...
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with the appropriate terms the statement describes. A. v A revenue not yet recognized; collected in advance for $1,200. A. Unearned Revenue Office supplies paid for and on hand that will be used in the next D. V period. A v Unrecorded interest on a notes payable of $180. B. Accrued Revenue C. Accrued Expense D. Insurance paid in advance. D. Prepaid Expense 8. v...
4) Franco’s athletic club is planning an expansion. The owner is either going to build a completely new building or jus...
4) Franco’s athletic club is planning an expansion. The owner is
either going to build a completely new building or just add on to
the existing facility. A new building will cost $10 million, but it
is expected to increase revenues by $2 million (before taxes) per
year for ten years. An add-on to the current facility will only
cost $500,000, but projections are that it will lead to an increase
in revenues of only $150,000 (before taxes) per year...
Select the name of the accounting assumption, principle or qualitative characteristic that you believe should be written in place of the dotted blank space. "The ............ assumption implies that the numbers contained in financial statements are not periodically adjusted for inflation, regardless of whether the economic entity is expected to remain in business for a long time." Periodicity Going concern Monetary unit Comparability Economic entity None of the answer choices is correct
15) Accounting is an information and measurement system that does all of the following except: A) Identifies business activities. B) Records business activities. C) Communicates business activities. D) Eliminates the need for interpreting financial data. E) Helps people make better decisions. 16) External users of accounting information include all of the following except: A) Shareholders. B) Customers. C) Purchasing managers. D) Government regulators. E) Creditors. 17) A corporation is: A) A business legally separate from its owners. B) Controlled by...
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (items a through k may be used more than once or not at all.) a. Economic entity assumption g. Expense recognition principle b. Going concern assumption h. Full disclosure principle C. Monetary unit assumption i. Relevance characteristic d. Periodicity assumption j. Faithful representation characteristic e. Historical cost principle k. Consistency characteristic f. Revenue recognition principle 1....
28. The American Institute of Certified Public Accountants (AICPA) continues to be involved in all of the following except a. developing and enforcing professional ethics. b. developing auditing standards. c. providing professional education programs. d. all of the above. 29. Which of the following pronouncements were issued by the Accounting Principles Board? a. Accounting Research Bulletins b. Opinions c. Statements of Position d. Statements of Financial Accounting Concepts 30. What is not a source of pressure that may influence the...
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with the appropriate terms the statement describes. A. v A revenue not yet recognized; collected in advance for $1,200. A. Unearned Revenue Office supplies paid for and on hand that will be used in the next D. V period. A v Unrecorded interest on a notes payable of $180. B. Accrued Revenue C. Accrued Expense D. Insurance paid in advance. D. Prepaid Expense 8. v...
4) Franco’s athletic club is planning an expansion. The owner is
either going to build a completely new building or just add on to
the existing facility. A new building will cost $10 million, but it
is expected to increase revenues by $2 million (before taxes) per
year for ten years. An add-on to the current facility will only
cost $500,000, but projections are that it will lead to an increase
in revenues of only $150,000 (before taxes) per year...
Most questions answered within 3 hours.
-
Computer Programming II CS141(Java)
Mention the appropriate relationship between following
classes:
HOD–StaffMember
Car–Ferrari
Student-Address
BankAccount–FixedAccount
House-Building...
asked 2 hours ago -
Assume one of your finals has 50 questions on it, and
lucky for you, it's all...
asked 3 hours ago -
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 5 hours ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 5 hours ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 5 hours ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 5 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 6 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 6 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 10 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 10 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 10 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 11 hours ago