Business, 08.10.2020 18:01 chelby2296

Identify the accounting concept that describes each situation below. Do not use any concept more than once. a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) choose the accounting concept b. Indicates that personal and business recordkeeping should be separately maintained. choose the accounting concept c. Ensures that all relevant financial information is reported. choose the accounting concept d. Assumes that the dollar is the "measuring stick" used to report on financial performance. choose the accounting concept e. Requires that accounting standards be followed for all items of significant size. choose the accounting concept f. Separates financial information into time periods for reporting purposes. choose the accounting concept g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts.

Answers: 3

Show answers

Answers

a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) - Going concern assumption

The going concern assumption, as the name implies, assumes that the firm will continue to operate in the foreseable future, and that it will be able to meet its financial obligations.

b. Indicates that personal and business recordkeeping should be separately maintained - Economic entity assumption

The economic entity assumption assumes that the firm is a separate entity from the owner, even if legally it is not so. For example, in accounting, a sole proprietorship is a separate entity even if under legal terms it is not so.

c. Ensures that all relevant financial information is reported - Full disclosure principle

This principle establishes that all financial information that may be relevant for the stockholders of the firm should be disclosed.

d. Assumes that the dollar is the "measuring stick" used to report on financial performance - Monetary unit assumption

This principle establishes that the value of all financial information should be expressed in monetary terms (for example, the dollar).

e. Requires that accounting standards be followed for all items of significant size - Materiality

The principle of materiality establishes that all financial information related to relevant items or transactions should be disclosed.

When the item or transaction is not considered to be relevant, then, it does not have to be disclosed.

For example, for a large multinational corporation, the purchase of a few pencils is not relevant, and does not have to be disclosed under the principle of materiality.

f. Separates financial information into time periods for reporting purposes - Periodicity

The periodicity principle relates to the fact that financial information is organized in specific periods of time, and these periods are carried out over time. These periods can go from daily to yearly.

g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept - Matching principle

The matching principle establishes that revenues should be recognized when the associated expenses have been spent.

h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. - Measurement principle

The measurment principle of accounting focuses on past values, not on current values, although current market values may be also recognized.

Answer from: Quest

choices : )

explanation:

Answer from: Quest

Pay attention in class and maybe you would know

Other questions on the subject: Business

Business, 21.06.2019 15:20, charityclark3935

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. if the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?

Answers: 1

continue

Business, 22.06.2019 02:30, milkshakegrande101

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Answers: 2

continue

Business, 22.06.2019 08:40, jasonr182017

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

Answers: 2

continue

Business, 22.06.2019 17:30, Jermlew

Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?

Answers: 1

continue

You know the right answer?

Identify the accounting concept that describes each situation below. Do not use any concept more tha...