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Book used for this answer is "ULTIMATE BOOK OF ACCOUNTANCY" published bu vishvas publications..
Ans : Business entity concern means... business and businessman both are different... and as an accountant prepare accounts from the point of view of business and not from the point of view of businessman...
but in case of partnership..... Business and businessman both are same entity..
What else can I help you with?
Why is it necessary for accountants to assume that business entity will remain a going concern?
It is a basic assumption that the owners of the business would like to stay in the business. Hence Accountants prepare the books on the same premise.
A business entity that is a separate taxable entity is called what?
Business Entity Concept
What is the going concern assumption?
In accounting, "going concern" refers to a company's ability to continue functioning as a business entity. It is the responsibility of the directors to assess whether the going concern assumption is appropriate when preparing the financial statements. Financial statements are prepared on the assumption that the entity is a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the normal course of operations.
Explain business as an entity?
The business entity convention in accounting distinguishes the business from any other accounting entity. So the accounts of the owners are kept separate from those of the business.
What is business entity principle?
According to business entity rule of basic accounting principles "Business itself is a separate entity then it's owners or shareholders and both are not same.
What is the California entity number for this business?
The California entity number for this business is insert number here.
What is the California state entity number for this business?
The California state entity number for this business is a unique identification number assigned by the state of California to track and identify the business entity.
What is economic entity assumption?
Economic entity assumption is an assumption under the Generally Accepted Accounting Principles that separates the stakeholders from the business itself. The business is its own entity. Economic entity assumption is an assumption under the Generally Accepted Accounting Principles that separates the stakeholders from the business itself. The business is its own entity.
How can I find the California Secretary of State entity number for a business entity?
To find the California Secretary of State entity number for a business entity, you can search for it on the Secretary of State's website using the business name or other identifying information.
What accounting concepts are regarded as fundamental and provide reasons why they are called fundamental?
# Principle of separate entity # Going concern # conservatism # matching of revenue & cost are considered fundamental accounting concepts as it enables to record transactions executed in business properly & figure out true profit earned as a result of undertaking the business. # Principle of separate entity # Going concern # conservatism # matching of revenue & cost are considered fundamental accounting concepts as it enables to record transactions executed in business properly & figure out true profit earned as a result of undertaking the business.
Can a business which has ceased trading still be a going concern?
A business that has ceased trading typically cannot be considered a going concern, as the going concern assumption relies on the expectation that the entity will continue its operations for the foreseeable future. If a business has stopped trading, it indicates that it may not generate future revenues or cash flows, undermining its viability. However, if there are plans for restructuring, asset liquidation, or potential new investments that could revive operations, it might still be evaluated under the going concern basis for a limited time.
Distinguish between legal entity and accounting entity?
An accounting entity is the economic unit, the business that is being accounted for and not necessarily a legal entity (Sands J 2002). I currently manage and submit accounting reports for a business unit within the company I work for, the business unit is an accounting entity with retained earnings, assets, etc... however the business unit is not in itself a legal entity, it is a department within a legal entity.
