Which of the following statements best describes the term “going concern”? The expenses of an entity exceed its income When current liabilities of an entity exceed current assets The ability of the entity to continue in operation for the foreseeable future The potential to contribute to the flow of cash and cash equivalents to the entity

Which of the following statements best describes the term “going concern”? The expenses of an entity exceed its income When current liabilities of an entity exceed current assets The ability of the entity to continue in operation for the foreseeable future The potential to contribute to the flow of cash and cash equivalents to the entity

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

Capital expenditure involves: Select one: O a. Exchange of current liabilities to acquisition of fixed assets O b. None of the options O c. Exchange of current assets to acquisition of fixed assets O d. Exchange of current loans to acquisition of fixed assets O e. Exchange of current debt to acquisition of fixed assets
why do most audited financial reports to the shareholders include a statemtn of cash flows in addition to the balance sheet and income statment? Discuss.
lAS I required that an entity prepare its financial statements (except cash flows statement) using the : a) @current cost basis of accounting b) cash basis of accounting c) © accrual basis of accounting d) present value basis of accounting
Identify the cash flow activity involve when an entity sold equipment at book value Options: • Not part of cashflow • Investing • Operating • Financing
One output of the accounting information system is the balance sheet. Transactions commonly associated with an organization's purchases and cash disbursements cycle are most likely to be reflected in which sections of balance sheet? A Current assets and current liabilities B Current assets and long-term liabilities C Long-term assets and current liabilities D Long-term assets and long-term liabilities
What is the role of the statement of cash flows in the financial statements' usage by the public?
Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets? the investing activities section Should not be reported on cash flow statement OO the financing activities section the operating activities section
Answer in detail
Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a.Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. b.Principal is the fair value of the financial asset at initial recognition. c.An entity shall assesswhether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated. d.An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form.
How are accounts payable treated to compute the net worth of abusiness entity
Discuss at least 3 roles that an entity’s cash flow data can play in analysing the entity’s financial performance.
The cash basis and accrual basis of accounting in the public sector in terms of A. Recognition of revenue B. Recognition of expenditure C. Disclosure of non financial assets D. Notion of depreciation Please answer part A-D