Below are the four underlying assumptions of generally accepted accounting principles. Assumptions Descriptions 1. Economic entity 2. Going concern 3. Periodicity 4. Monetary unit a. A common denominator is needed to measure all business activities. b. Economic events can be identified with a particular economic body. c. In the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely. d. The economic life of a company can be divided into artificial time intervals for financial reporting. Required:Match each business assumption with its description.
Below are the four underlying assumptions of generally accepted accounting principles. Assumptions Descriptions 1. Economic entity 2. Going concern 3. Periodicity 4. Monetary unit a. A common denominator is needed to measure all business activities. b. Economic events can be identified with a particular economic body. c. In the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely. d. The economic life of a company can be divided into artificial time intervals for financial reporting. Required:Match each business assumption with its description.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Below are the four underlying assumptions of generally accepted accounting principles.
| Assumptions | Descriptions |
|
1. Economic entity 2. Going concern 3. Periodicity 4. Monetary unit
|
a. A common denominator is needed to measure all business activities. b. Economic events can be identified with a particular economic body. c. In the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely. d. The economic life of a company can be divided into artificial time intervals for financial reporting. |
Required:
Match each business assumption with its description.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education