Which one of the following answers explain the prudence and business entity concepts the best? O...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Which one of the following answers explain the prudence and business entity concepts the best? O Prudence - revenue and income should be anticipated; therefore any unearned income should be shown in the accounts | Business entity Only those transactions which can be expressed in terms of money should be recorded for accounting. O Prudence - revenue and income should not be anticipated therefore any unearned income should not be shown in the accounts. | Business entity The 'Business' and 'owner' are taken as two separate entities Prudence - all known expenses and liabilities must be taken into account when preparing accounts, whether the amount is known with certainty or it has been estimated. | Business entity - Only those transactions which can be expressed in terms of money should be recorded for accounting. Prudence income should be recognised when it is earned rather than when cash is received. | Business entity - when preparing accounts the company must assume that there is no intention or need to go into liquidation or to curtail significantly the current level of business operations. Which one of the following answers explain the prudence and business entity concepts the best? O Prudence - revenue and income should be anticipated; therefore any unearned income should be shown in the accounts | Business entity Only those transactions which can be expressed in terms of money should be recorded for accounting. O Prudence - revenue and income should not be anticipated therefore any unearned income should not be shown in the accounts. | Business entity The 'Business' and 'owner' are taken as two separate entities Prudence - all known expenses and liabilities must be taken into account when preparing accounts, whether the amount is known with certainty or it has been estimated. | Business entity - Only those transactions which can be expressed in terms of money should be recorded for accounting. Prudence income should be recognised when it is earned rather than when cash is received. | Business entity - when preparing accounts the company must assume that there is no intention or need to go into liquidation or to curtail significantly the current level of business operations.
Expert Answer:
Answer rating: 100% (QA)
ANSWER Prudence Revenue and income should not be anticipated therefore any unearned income should no... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these organizational behavior questions
-
Which one of the following compounds is most consistent with the infrared spectrum given in Figure 13.31? Explain your reasoning.
-
Which one of the following is incorrect? a. Management accounting is not as important as financial accounting for the competitive success of a company. b. Governments do not require a company to...
-
Which one of the following is correct? a. Short-run planning includes capital budgeting and operational budgeting. b. Long-run planning includes production and process prioritizing. c. Long-run...
-
They are considering trading their car in for a newer used vehicle so that Harry can have dependable transportation for commuting to work. The couple still owes $5,130 to the credit union for their...
-
To understand how a multiple-server waiting line system with a shared queue compares to a multiple-server waiting line system with a dedicated queue for each server, reconsider the Burger Dome...
-
Lack of sleep costs companies about $18 billion a year in lost productivity, according to the National Sleep Foundation. Companies are waking up to the problem, however. Some even have quiet rooms...
-
Match the concept listed in items 1 through 8 with the most appropriate description listed in items a through h. Concept 1. Capital investment analysis 2. Type of environmental control 3. End-of-pipe...
-
Picasso Company is a wholesale distributor of professional equipment and supplies. The companys sales have averaged about $900,000 annually for the 3-year period 20122014. The firms total assets at...
-
The Accountability Act of 2006 created for the first time: Question 1 options: a government which could not be corrupted absolute transparency in regard to ethics issues a conflict-of-interest law a...
-
1. a. How much did the materials cost per unit change between June and July? b. How much did the conversion cost per unit change between June and July? 2. Which is the optimal choice of material and...
-
Which criteria will you use to deploy a salesforce for specialized sales organizations? (500 words)
-
Julia and John are two friends that formed a partnership which will start operations at the end of 2021. They are going to sell a type of cosmetics product. For 2022 their condensed budgeted income...
-
ELEMENTS OF A FINANCIAL SYSTEM 1. Financial Institutions - An organization, which may be either for-profit or nonprofit, that takes money from clients and places it in any of a variety of investment...
-
Maryhill Fabrics is considering an investment opportunity to expand their soft furnishings market share. They have identified a new building which they can rent for 25,000 a year and have estimated...
-
What are the evolutionary implications of genome duplication events, such as whole-genome duplications and segmental duplications, in vertebrate and plant lineages, and how do these events shape...
-
products and liquid soaps as a by-product. The bottled liquid soaps can be sold for P2 per liter. Liquid soaps require packaging costs of P0.10 per liter and sales commissions at 10% of sales price....
-
Problem 1: The compression ratio of an air-standard dual cycle is 13, and at the beginning of compression the pressure is 95 kPa, the volume is 1.4liters, and the temperature is 27C. During the...
-
Why are stocks usually more risky than bonds?
-
Shelley and Co. has the following balance sheet elements as of December 31, 2012. Required: Compute the total amount of: 1. Current assets. 2. Long-term assets. 3. Current liabilities. 4. Long-term...
-
Following are transactions for Michael Custodial, Inc. Assume the companys beginning work-in-process services account balance is zero. a. Purchased supplies costing $5,000 for cash. b. Received and...
-
Why is it necessary to physically count inventory when the perpetual inventory method is being used?
-
Information from Razure Adventures Companys financial statements for the current year are provided in the Working Papers. Work independently to complete the following problem. 1. Calculate the...
-
Baycom Corporation's comparative income statement is provided in the Working Papers. Your instructor will guide you through the following examples. 1. Complete the partial income statement using...
-
Baycom Corporation's comparative balance sheet is provided in the Working Papers. Work independently to complete the following problem. 1. Complete the comparative balance sheet using trend analysis....
Study smarter with the SolutionInn App