Question

Determine which of the basic accounting concepts apply to each of these situations.
1. Business entity
2. Going concern
3. Monetary unit
4. Periodicity
A. A company trades a delivery truck for computer equipment. The truck is valued at $ 5,000.
B. A company has 10,000 shareholders. Subsequently 2,000 shareholders sell their shares to others. The company’s financial statements are not affected.
C. A company continues in business even though its founder died.
D. A company prepares annual financial statements.
E. A major supplier for the company declares bankruptcy. The company’s financial statements are not affected.


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  • CreatedMarch 25, 2015
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