The personal assets of the owner of a company will not appear on the company's balance sheet
Question:
The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?
Select one:
a. Cost
b. Economic Entity
c. Monetary Unit
Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount?
Select one:
a. Monetary Unit
b. Cost
c. Economic Entity
Which principle/guideline allows a company to ignore the change in the purchasing power of the dollar over time?
Select one:
a. Economic Entity
b. Cost
c. Monetary Unit
Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?
Select one:
a. Economic Entity
b. Full Disclosure
c. Conservatism
Which principle/guideline justifies a company violating an accounting principle because the amounts are immaterial?
Select one:
a. Conservatism
b. Full Disclosure
c. Materiality
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker