Discuss the significance of the following assumptions in the preparation of an entitys financial statements: (a) Entity

Question:

Discuss the significance of the following assumptions in the preparation of an entity’s financial statements:
(a) Entity assumption
(b) Accrual basis assumption
(c) Going concern assumption
(d) Period assumption.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9781118608203

9th Edition

Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie

See More Books

Question Posted: Oct 19, 2022 06:21 AM

See More Questions

Preparation of Financial statements under the guidance in IAS 1 Preparation of Financial Statements should be sufficient for most entities. However, there are business companies that are required to...
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
First Class Telecommunications Inc. (FCT or the Company) is a leading regional wireless telecommunications service provider in the United States serving approximately 3 million wireless customers in...
QUESTION 9 The output expression for an AND-OR-Invert circuit having one AND gate with inputs A, B and C and one AND gate with inputs D, E and Fis O(A+B+C)(D+E+F) O (A+B+C)(D+E+F) ABC + DEF...
Use the excerpt of Dragonfly Corporations balance sheet and its income statement below to compute Dragonflys profit margin and return on assets for 2015 and 2016. Comment on Dragonflys profitability...
Credit sales are $92,000 in June and $80,500 in July; 80% are collected in the month of sale and 20% collected in the following month.What are the Total collections of july ?
Contrast the relative importance of cash receipts and sales adjustments transactions in the typical audit engagement.
Matilda Crone owns and operates a public relations firm called Dance Fever. The following amounts summarize her business on August 31, 2012: During September 2012, the business completed the...
Explain the importance of leadership to a team. Explain leadership practices you incorporated into your leadership style. Provide examples of how you incorporated those leadership practices within...
Messer Company purchased equipment for $24,000. The company is considering whether t o determine annual depreciation using the straight-line method or the declining-balance method at 150 percent of...
Craig's Car Detailing Service had the following accounts and acount balances in the adjusted trial balance columns of its workshet for the year ended 30 June 2017. Required Record the required...
The following list of items relate to the business of Jay Street Wear: 1. Cash paid into the business by Jay to begin operations 2. Racks purchased to display merchandise to customers 3. Building...
For the following exercises, use this scenario: The population of a city has risen and fallen over a 20-year interval. Its population may be modeled by the following function: y = 12,000 +...
Explain the difference between the credit risk and the market risk in a swap.
Explain the role of the Basel committee in regulating banks.
Under what circumstances should an American put option on a stock paying no dividends be exercised early?
Which of the following lead to adjustments to the terms of an exchange-traded option: (a) stock splits, (b) stock dividends, (c) cash dividends?
How is an implied volatility calculated?
Calculate the energy change (in kJ/mol) for the reaction Na(g) + F(g) Na+(g) + F-(g) Is the reaction endothermic or exothermic?
Write the binomial probability in words. Then, use a continuity correction to convert the binomial probability to a normal distribution probability. P(x 110)
What is the difference between a current liability and a long-term liability?
What is the difference between a current liability and a long-term liability?
What is the difference between adjusting entries and closing entries?
Athens Gas Station has figured out the weekly demand distribution for their gas sales. Each gallon of gas sold at the pump results in a profit of 10 cents/gallon and any lost sales results in a cost...
1. The maximum pressure an eardrum can withstand without rupturing is Pmax = 3.0102 Pa. Assume a sound is made at that pressure. If the density of air is, p=1.20 kg/m, and the speed of sound is 340...
52. A wave is sent down a string with a linear mass density of 1.600 x 10-4 kg/m. The wavefunction that describes this wave is: y(x,t) = (0.021 m)*sin{(2.00 rad/m)*x + (30.0 rad/s)*t} What is the...

Discuss the significance of the following assumptions in the preparation of an entitys financial statements: (a) Entity

Question:

Step by Step Answer:

a The entity assumption states that an entity is a separate and distinct economic unit that should b...View the full answer

Financial Accounting

Students also viewed these Business questions