The accounting assumption that states an owner of a business must keep the business checkbook separate from the personal checkbook is called? Monetary Unit Assumption Gong Concern Assumption Matching Principle Economic Entity Assumption

The accounting assumption that states an owner of a business must keep the business checkbook separate from the personal checkbook is called? Monetary Unit Assumption Gong Concern Assumption Matching Principle Economic Entity Assumption

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Studying GAAP Accrual accounting. There is also cash-basis accounting which does not comply with…

A: Cash-basis accounting is an accounting method that records transactions only when money is…

Q: When an owner of a proprietary business withdraws cash from the business to pay for personal…

A: According to the accounting formula, a company's total assets equal the sum of its liabilities and…

Q: How does the time period assumption affect an accountant's analysis of business transactions ?

A: Time period assumption state that business organizations are required to prepare and present their…

Q: The requires that a business' financial records are kept separately from the owner's financial…

A: The concept business is an activity of selling, buying, producing their product to the customers for…

Q: What are business transactions called that increase owner’s equity as a result of providing a…

A: A liability is amount payable or obligation which results from past event, whose payment needs…

Q: Which journal entries is correct when a business entity collects an accounts receivable? A. Cash -…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Define the measurement principle. Select one: O a. Requirement that accounting records should all be…

A: Accounting principles: Accounting principles are the rules or policies which are required to be…

Q: The expense recognition principle relates

A: Expense recognition is based on accrual and matching concept where accrual concept states that…

Q: Explanation of a business's accounting function. What is the function's purpose, and why is it…

A: INTRODUCTION: Accounting is the discipline of recording and reporting on a company's financial…

Q: ncial information Reporting financial information Summarizing fin

A: Accounting involves many activities with the aim to prepare and present all transactions incurred by…

Q: Which is the last step of accounting as a process of information? Select one: O a. Preparation of…

A: Introduction:- Accounting is the process of recording, classifying, and summarizing financial…

Q: Generally accepted accounting principles require that companies use the _____ of accounting.…

A: Accounting concepts: These are the set of rules and guidelines which every company must follow in…

Q: What does accounting entity assumption mean for a business?

A: The accounting entity assumption, also known as the economic entity assumption, is a fundamental…

Q: Match the de

A: Financial informations are the informations which is measured in monetary term and these are the…

Q: Which accounting concept or principle states that the transactions of a business must be recorded…

A: It is true that business as an entity is different from its owners and its accounts shall be…

Q: Which of the following types of businesses require financial information to operate effectively?

A: The following types of businesses require financial information to operate effectively are:(1)…

Q: A journal that is not commonly used by a business is a sales journal purchase journal cash flow…

A: A journal is the written record of a transaction taken place in a business. The journal includes…

Q: What are the rights of creditors (claims against the assets of the company--creditors' equity) that…

A: The creditor is the person to whom the company owes money at the later date. Creditors are the one…

Question

The accounting assumption that states an owner of a business must keep the business checkbook separate from the personal checkbook is called?

Monetary Unit Assumption

Gong Concern Assumption

Matching Principle

Economic Entity Assumption

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which of the following would not be recorded as an identifiable accounting transaction? Multiple Choice Hiring a new employee. O Putting a deposit down on a new vehicle. O Obtaining a bank loan. Receiving a deposit from a customer.
Which of the following would not be recorded as an identifiable accounting transaction? Multiple Choice Hiring a new employee. Putting a deposit down on a new vehicle. O Obtaining a bank loan. O Recelving a deposit from a customer.
A concept of accounting that indicates that the financial records of the business should be kept separate from the personal financial records of the business owner is the ________________________. Group of answer choices business entity concept cost concept proprietorship concept asset concept
Accounting role of a business organization explained. What is the purpose of the function and why is it required? What kind of information does it provide?
Accounts Payable (A/P) are: Amounts totaling the net worth of a company Amounts paid to owners Amounts that customers owe your business Amounts owed to others that are obligations
Question: Which of the following is a fundamental accounting principle that states that businesses should only record transactions that can be expressed in monetary terms? A) Matching principle B) Materiality principle C) Monetary unit principle D) Conservatism principle
Accounting Question How do gains and losses relate to the normal operations of a business? Explain Please.
Which of the following systems provides the internal financial information needed to manage a business? a. MRS b. IRS c. GL/FRS d. TPS
Revenue in Business Question How does interest expense contribute to revenues of a business? Explain Please.
Financial statement users assess a business liquidity and solvency to see whether a business is generating enough cash to pay its debts True False
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)
Consider the following statements. For each one of them state whether the statement is true or false and provide a brief explanation to support your answer. a) Financial accounting is targeted at external users while management accounting focuses on internal users. b) The trial balance is part of a company’s financial statements. c) Bank loans are always non-current liabilities. d) In accounting, revenues are recognised whenever there is a cash transfer. e) As understandability is one of the key characteristics of accounting according to the IASB conceptual framework, transactions that are too difficult should not be recognised in the accounts.