Which of the following statement best describes the accounting concept of going concern? O Expenses and revenue are matched to the same time period in which they The business will continue to trade the foreseeable future. When a business produces its financial statement it should always adopt a figure for profit and / or the valuation of its assets. Items with a low value should not h

Q025: Which accounting concept requires that financial statements reflect the assumption that the business will continue operating indefinitely? A) Economic Entity Assumption B) Going Concern Assumption C) Monetary Unit Assumption D) Periodicity Assumption

Which of the following best describes what we mean when we refer to the quality of financial statements? O A. Showing only revenue from product sells. B. Presenting all relevant information in a fair and complete manner. O C. Listing all assets in alphabetical order. OD. All of the above.

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

Which accounting principle requires that expenses be matched with revenues? a) Revenue Recognition Principle b) Matching Principle c) Historical Cost Principle d) Full Disclosure Principle

Match the following situations or statements with the correct assumption or principle. Financial Statements must be prepared at defined equal time intervals A company is assumed to continue its activity in order to fulfill objectives and commitments All important financial information must be reported or revealed. The value of an asset will be kept unchanged regardless of changes in the assets fair value. Expenses are recorded in the same period when they help generate revenues. Choose... Choose... Going concern assumption Periodicity assumption Expense recognition principle Historical cost principle Full disclosure principle Choose... Choose... =

Revenue will be recognized when the following occurs as a result of a business activity with a customer: a) There is an increase in assetsb) There is an increase in liabilities c) There is a decrease in assetsd) none of these

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)

Indicate if the following transaction from Torte Baking Company increases or decreases assets, liabilities, equity, revenue, expense, and net income. The pattern of the + and - must adhere to the balance sheet equation. Show the impact of revenue and expense on both net income and equity.  If there is a + and - within one category (e.g., assets for transaction 2), then list the accounts that go up and down. Transaction (26) Recognize tax expense that will be paid later.  Assets       ["", "", ""]  Liabilities       ["", "", ""]  Equity        ["", "", ""]  Revenue        ["", "", ""]  Expense        ["", "", ""]  Net Income        ["", "", ""]

A prepaid expense is one of the assets which are on a balance sheet that a company or rather a business is paying in advance for the services and goods that they are yet to receive in the future. Prepaid expenses’ value is made over time onto the income statement but is initially recorded as an asset. So as to ensure a record sense of accountability, a company must adjust these expenses so as to ensure that the expenses are recognized within the period that the expenses are incurred within the business period. This expense is placed in the debit column before it expired, however, it has to be moved to the credit column. There are a number of adjustments that most of the companies do make entries to before they prepare their ultimate report on the financial period. Some of these adjustments include; accrued expenses, accrued revenue, depreciation expenses and even deferred revenues. What is your opinion?