Question: Determine which of the basic accounting concepts apply to each

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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