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Which accounting assumption assumes that an enterprise will continue in operation long enough to carry?
Wiki User
∙ 11y ago
going concern assumption
Wiki User
∙ 11y ago
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The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the?
time period assumption
What is going concern concept principle?
is a concept which shows that a bussiness is continue in its operation even if it is not .
Why do you want to be self-employed?
To be your own boss and independent and make your own decision that you think would be best for your business operation. But of course you do have all of your customers that you will have to please in order to make a profit from your self employed business operation and if you want to continue to make a net profit from the business.
Is exit price accounting retrospective or forward looking in its approach?
Exit Price Accounting is forward looking as it takes into consideration exit prices. That is, we have to look at what would be the price of the asset if we were going to sell it in the future. The concept of going concern is questioned here because if the firm is supposed to continue operations indefinitely in the foreseeable future, then why does it have to sell its assets? Here, Exit Price certainly comes under the limelight of critics!
Who is the user of accounting information?
The users of accounting information are divided into two categories:- 1) internal users 2) External users 1. INTERNAL USERS These are the management and employees' of the organisation. - Management/managers need accounting information to assist them in making different decision concerning the business. eg. changing the product line, increasing production or sales of a certain product, expanding its operation or reducing its coverage etc. - Employees need accounting information in order to know their productivity, whether their earnings will be increased in the future, whether the business is able to pay their wages/salaries etc. 2. External Users These are the users apart from those within the organisation who need accounting information so as to make their own decision in relation to the bosiness/organisation. example of those external users are customer, suppliers, bankers of the business, competitors, tax authorities, investors, the government etc. Some the external users and their information needs are:- - Customers need information such as whether the business will continue to lender them services or not, and the ability of the business to meet their orders at the specified time. - supplier need accounting information so as to know whether the business will be able to pay their debts for the goods or services sold or lendered to it , and the time the business will take to pay its debt. - Investors need the accounting information so as to decide whether they should invest with the business, whether withdrowing their investments and or increase their investment in the business. - tax authorities need accounting information so as to predict/calculate how much will be received from the business as tax, or to increase or decrease tax payable by the business.
The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the?
time period assumption
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.
Can business continue to operation without proper accounting information system?
No answer yet ?
What are the three characteristics of a valid assumption?
logical, realistic, and essential for the planning to continue
Why is the going concern assumption an important consideration in understanding financial statement?
According to Going Concern Assumption it is assumed that the said business will continue in the foreseeable future and will not liquidate in future, This assumption ensures the faith of investors, potential investors, and all the stakeholders in the business. Thus the Financial Statement is prepared on the basis of Going Concern Assumption.
What set operation is used when you want to continue all the elements of the two given sets?
Not sure about "continue" but I suspect the answer is "union".
What are the rates for enterprise rent a car?
The rates for cars vary on what car you want to rent to drive and how far you drive, but rates start at $9.99 for a day and continue to go up for Enterprise.
What is going concern concept principle?
is a concept which shows that a bussiness is continue in its operation even if it is not .
How do you continue to stay current with trends in your field Accounting fie ld?
There are several ways to stay current with trends in the accounting field. They include interactions with other accountants, subscribing to accountant themed magazines and publications, attending conferences and reading accounting websites and blogs.
What are the Accounting principles and concepts?
Accounting basics are the building blocks of accounting theory such as:- what asset, liabilities, equity, revenue and expenses are;- double sided accounting; and- time value of money.Accounting concepts generally refers to the four pillars of accounting theory:- Going Concern: the assumption that the company you are accounting for is going to continue to operate in the future (and not be wound-down or go bankrupt unless there is compelling evidence to the contrary).- Consistency: the accountant will use the methods of valuing and recording transactions year-over-year unless they disclose otherwise.- Conservatism: the accountant will be cautious about what and when they record items on the books.- Matching: revenues and expenses which are related should be recorded over the same accounting period.Accounting Principles:Each region (ie. Canada, US, UK, etc...) have their own accounting principles these are specific guidelines as to how process, value, record and evaluate accounting transactions.Canadian Accounting principles are called Canadian Generally Accepted Accounting Principles (CDN GAAP) which "provides the framework of broad guidelines, conventions, rules and procedures of accounting". Issued by Accounting Standards Board (AcSB).United States principles are called US Generally Accepted Accounting Principles (US GAAP) which "is the standard framework of guidelines for financial accounting [which] includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. Issued by the Financial Accounting Standards Board (FASB).Both are moving towards international GAAP as set by the International Accounting Standards Board (IASB).
Should sting operation continue?
Sting operations should continue because they are good for a community. Sting operations catch people that are trying to get away with illegal acts.
How could you use assent in a sentence?
The child nodded in assent when asked if they wanted ice cream for dessert.
