When accounting was developed in the 14th and 15th centuries, some businesses had very short lives. For instance, a business might have been created for a ship to sail from Europe to North America and return with furs and other goods. After the goods were delivered and profits were distributed among those who financed the shipment, the business ceased to exist. In more recent centuries, businesses began to experience longer lives. Identify the accounting concept that is needed when accounting for businesses with long lives. Explain what this concept means and why it is necessary for modern-day accounting.
Answer to relevant QuestionsWhy is it appropriate to use cash basis accounting in your personal life but not in the business world? For each of the transactions in M3- 10, write the journal entry using the format shown in the chapter. Given the transactions in M3- 17 and M3- 18 (including the examples), prepare an income statement for Swing Hard Incorporated for the month ended February 28. (This income statement would be considered “ preliminary” ...For each of the transactions in M3- 3, write the journal entry using the format shown in the chapter. Over- the- Top Technologies (OTT) operates a computer repair and web consulting business. News Now (NN) publishes a local newspaper. The two companies entered into the following transactions. a. NN billed OTT for $ 500 of ...
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