Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf
Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf
8th Edition
ISBN: 9781119491057
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
Question
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Chapter 2, Problem 2.13E

(a)

To determine

Accounting assumptions: These are the conventions which guide FASB (Financial Accounting Standards Board) to develop accounting standards. The basic assumptions are monetary unit assumption, economic entity assumption, periodicity assumption, and going concern assumption.

Accounting principles: These are the rules which guide FASB to prepare guidelines necessary for reporting the accounting formation, in a useful and relevant format which is better understood by the users. Some basic principles are historical cost principle, fair value principle, and full disclosure principle.

To identify: The accounting assumptions and principles that were violated by Company L, and explain what the company actually should have done.

(b)

To determine

To identify: The accounting assumptions and principles that were violated by Company L, and explain what the company actually should have done.

(c)

To determine

To identify: The accounting assumptions and principles that were violated by Company L, and explain what the company actually should have done.

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Chapter 2 Solutions

Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf