Identify the accounting principle or assumption that best reflects each situation. Situation 1. Accounting information is based on actual cost. 2. Transactions and events are shown in monetary units. 3. The life of a company can be divided into time periods, and useful reports can be prepared for th periods. 4. Each business is accounted for separately from its owner or owners. 5. A company records the expenses incurred to generate the revenues reported. 6. A company reports details behind financial statements that would impact users' decisions.

Identify the accounting principle or assumption that best reflects each situation. Situation 1. Accounting information is based on actual cost. 2. Transactions and events are shown in monetary units. 3. The life of a company can be divided into time periods, and useful reports can be prepared for th periods. 4. Each business is accounted for separately from its owner or owners. 5. A company records the expenses incurred to generate the revenues reported. 6. A company reports details behind financial statements that would impact users' decisions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What does the balance sheet show? A) the financial performance of operations during a specific period. B)The financial condition of a company at a specific point in time. C) cash flows in and out of the business. D) Company sales details only.
The four major financial reports that summarize the effects of economic events (like the results of operations) on a business for a specific time period or accounting period are called what? Group of answer choices tax returns managerial statements financial statements economic statements
Accounting information about the planning, organizing, and running of a company is prepared for: 1.internal users 2.external users
Using the following categories, discuss the differences that exist between accounting for these items in a personal context versus for a business. Specifically provide examples of the difference in account names or terms used to describe the eguivalent item when related to accounting for a business. 1. Assets & LIabilities 2. Net Worth 3. Surplus(deficit)
An identifiable part of the company for which financial information is available is called __________. ANSWER a business segment the contribution margin the gross profit the profitability analysis I DON'T KNOW YET
Question 1:What is the primary purpose of the income statement in accounting? a) To show the financial position of a company at a specific point in timeb) To summarize revenues and expenses over a periodc) To report the company's assets, liabilities, and equityd) To provide details about the cash flows of a business
If a company faced loss, while preparing the worksheet for the company, which sentence is correct for recording the loss? Select one: a. The loss is placed in the income statement debit column and balance sheet credit column. b. The loss is placed in the income statement credit column and balance sheet debit column. c. The loss is placed in the income statement debit column and balance sheet debit column. d. The loss is placed in the income statement credit column and balance sheet credit column.
Which of the following, if performed by a firm as part of the accounting cycle, would not be considered part of the step in which the firm interprets the financial information? Multiple Choice determining how much the business owes its suppliers determining what the profit or loss was for the period determining how much customers owe the business determining the correct journal entry while analyzing a transaction
Options are: General Accounting principle Revenue recongnition principle Full disclosure principle Buisnmess entity assumption Going concern assumption
The business entity assumption is important because O a. it requires that the company record all of its economic transactions in accordance with GAAP. O b. it limits economic data in the accounting system to data directly related to the activities of the business. O c. it limits the amount that a company can record for its transactions in the accounting records. O d. it requires that all transactions be recorded in the period in which they occur.
For each of the following, indicate whether the item would be reported on the balance sheet (B/S),reported on the income statement (I/S), or not shown in the financial statements (Not) and whetherit relates to a service company (SC) or merchandising company (MC).Financial Statement Type of CompanyInventorySales RevenueCost of Goods Available for SaleService Revenue
Accounting standards must be followed by a company when preparing: 1. Management Report 2. Income Statement 3. Financial Analysis 4. Statement of Financial Position A: 2 only B: 2 and 3 C: 2 and 4 D: 2, 3 and 4