Identify the accounting principle or assumption that best reflects each situation. Situation 1. A business is...

Transcribed Image Text:

Identify the accounting principle or assumption that best reflects each situation. Situation 1. A business is accounted for separately from other business entities and its owner. 2. Record expenses incurred to generate the revenue reported. 3. Financial statement details that would impact decisions are often disclosed in the footnotes. 4. Accounting reports presume that the business will continue operating instead of being closed. 5. Transactions and events are shown in monetary units. 6. The life of a company can be divided into time periods, and useful reports can be prepared for those periods. Principle or A Identify the accounting principle or assumption that best reflects each situation. Situation 1. A business is accounted for separately from other business entities and its owner. 2. Record expenses incurred to generate the revenue reported. 3. Financial statement details that would impact decisions are often disclosed in the footnotes. 4. Accounting reports presume that the business will continue operating instead of being closed. 5. Transactions and events are shown in monetary units. 6. The life of a company can be divided into time periods, and useful reports can be prepared for those periods. Principle or A

Answer rating: 100% (QA)

The image you have provided shows a worksheet that asks to identify the accounting principle or assu... View the full answer