Economic Entity Assumption: An economic entity assumption assumes the activities of business and its owner are separate and should be recorded separately. This assumption considers business and its owner two separate identities. To identify: Form of business organization that should be recommended to N for the business with reason and benefits and weakness of each form of business organization.
Economic Entity Assumption: An economic entity assumption assumes the activities of business and its owner are separate and should be recorded separately. This assumption considers business and its owner two separate identities. To identify: Form of business organization that should be recommended to N for the business with reason and benefits and weakness of each form of business organization.
Formula Formula ROI (%) = Net Income Principal Amount × 100
Chapter 1, Problem 1CCCP
(a)
To determine
Economic Entity Assumption: An economic entity assumption assumes the activities of business and its owner are separate and should be recorded separately. This assumption considers business and its owner two separate identities.
To identify: Form of business organization that should be recommended to N for the business with reason and benefits and weakness of each form of business organization.
(b)
To determine
To identify: The requirement of accounting information to N and reason of the requirement of information.
(c)
To determine
To identify: The specific asset, liability and owner’s equity accounts that are likely to be used by C. Corporation to record its business transactions.
(d)
To determine
To identify: The bank account of N should be opened or not.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.