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.
-
The factor of incentive scheme fail is because of rewards
rupture relationships. Explains
(in 300 words)
asked 12 minutes ago -
Given an operating system that supports a one-to-one
relationship between user-level threads and kernel-level threads
and...
asked 17 minutes ago -
1-7. Identify the initiation, propagation, and termination steps
for the following accident report. Suggest ways to...
asked 19 minutes ago -
How many photons are produced in a laser pulse of .125 J at 523
nm
asked 21 minutes ago -
how did government respond to the crash of 1929 and
financial crisis of 2008. Please provide...
asked 19 minutes ago -
An electrochemical cell consists of a Pt|H+(aq,1.00
M)|H2(g) cathode connected to a
Pt|H+(aq)|H2(g) anode in which...
asked 23 minutes ago -
Approximately 3.9 x 106 kg of water falls 65 m over a waterfall
each second. (a)...
asked 25 minutes ago -
Python Assignment: Write a program that uses stacks to solve
postfix equations.Read the below in a...
asked 42 minutes ago -
Q45 What do you understand by standardized tool of research? [1
Mark]
asked 45 minutes ago -
For the movie my big fat greek wedding
1. Locate and describe three instances of non-verbal...
asked 51 minutes ago -
When a bank makes its loans, if it screens its borrowers it will
collect repayment revenue...
asked 50 minutes ago -
A customer has requested that Lewelling Corporation fill a
special order for 2,400 units of product...
asked 1 hour ago