The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future. To find: The description of continuity by Sprouse and Moonitz.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Need help with this financial accounting question

For the purposes of the 20x0 annual financial statements, how would the additional shares of Series A preferred stock issued from Company Y to Company Y's original investor on November 1 20X0 affect the measurment of the company Y's series A preferred stock purchased on may 1, 20x0?

General Accounting

Answer 2

Question

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Answer 6

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

Answer 7

Chapter 2, Problem 2.4C

(a)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:The description of continuity by Sprouse and Moonitz.

Answer 8

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

Answer 9

(b)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find:Whether historical cost of company’s assets is relevant while planning to buy a business. Also, determine the asset values that would be relevant to the decision of investment.

Answer 10

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Answer 11

(c)

To determine

Introduction: The going concern concept indicates that the company will continue its operations for an indefinite period and will not liquidate in the early future. As per the accounting principles, company is considered as a going concern when there is no evidence to believe that it will cease its operations in near future.

To find: Whether continuity is presumed when company is bankrupt and plans to liquidate its assets. Also, determine the impact of lack of continuity on measurement of assets.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 2 - Prob. 2.1C Ch. 2 - Prob. 2.2C Ch. 2 - Prob. 2.3C Ch. 2 - Prob. 2.4C Ch. 2 - Prob. 2.5C Ch. 2 - Prob. 2.6C Ch. 2 - Prob. 2.7C

Solution Summary: The author explains the concept of continuity by Sprouse and Moonitz. The company is considered a going concern when there is no evidence that it will cease its operations in near future.

Concept explainers

Videos

Want to see the full answer?

Chapter 2 Solutions