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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.
What else can I help you with?
What is meant by the Accounting Period Concept?
When accountants prepare financial statements, they assume that the life of the business can be divided into time periods. This is called the accounting period concept. Using this concept, accountants must determine in which period to report the revenues and expenses of the business.
What is the accountants oath?
"I solemnly swear that I will assume the responsibilities and obligations as a Certified Public Accountant in the State of Maryland and in the United States of America. "I will support the laws and regulations and perform my professional duties to the best of my ability in an ethical, professional and objective manner. "As a CPA, I will uphold the honor and dignity of the accounting profession and abide by the rules of professional conduct."
Is stapler an asset?
For something to be an asset it has to meet all of these requirements. Is it a resource? yes Is it controlled by the business? yes Is it a result of a past event? yes Is the value reliably measured? i.e.) R40 from slip Yes Will it result in economic benefit? This is the tricky part. It depends how you justify it. future economic benefit is anything you can justify that will benefit the business. If it is not material then it is recorded nowhere. (the entry does not exist.) If it was stolen people could do an asset disposal provided it is material. Most people assume a stapler is an expense. It could be either. It just depends on how you justify it. I like to think it is an asset as it utilizes staples to organise and bind paperwork in the work place to improve productivity and organise the office better thus economic benefit is obtained but other accountants have different views.
What individuals assumes all liability?
Individuals who assume all liability are typically sole proprietors or independent contractors running their own businesses. In this structure, the owner is personally responsible for all debts and legal obligations incurred by the business, meaning their personal assets can be at risk. Additionally, anyone signing a liability waiver or agreement may also assume liability for potential risks associated with an activity or service. This concept emphasizes the importance of understanding the risks involved in personal and business decisions.
Can you cash a check made out to a business?
Absolutely not. Checks made payable to a business may only be deposited into that businesses account. Cashing checks made payable to any business would open the door ( wide open ) for all kinds of criminal behavior. There have even been instances where an employee of a company has opened a secret account under his employers name and deposited checks into this secret account that only he or she has access to. I would assume any bank would immediately call the police if a person were to present a check made out to a business and try to cash it.
What is meant by the Accounting Period Concept?
When accountants prepare financial statements, they assume that the life of the business can be divided into time periods. This is called the accounting period concept. Using this concept, accountants must determine in which period to report the revenues and expenses of the business.
What is an entreprenur?
An entrepreneur is someone who starts a business. These people operate the business and assume the risks necessary to make money.
Is restaurant business is feasible?
As there are many thousands of restaurants in business today it is safe to assume it is a feasible and viable business.
If you assume the loan do you have to have a credit ck?
Since the lender must approve you to assume any loan, a credit check will probably be necessary.
How to Learn About Corporation Tax Software?
While you may assume that only accountants have to worry about finding corporation tax software, there are small corporations where those who are not accountants may be able to prepare a tax return for. This involves being good with numbers and being an organized individual. Having a fair amount of patience is also important.
Can a corporation assume a residential mortgage?
Type your answer here... No, if the business is a corporation.
Can a former employer still use work and photograph on their website to promote business?
An employer is a boss who employs an employee to work for them. It is not clear who owns the website (I assume the employer), and whose business is it that is being promoted (I assume the ex-employee is running a business on the side)?
Can a former employer still use work and photograph on a website to promote business?
An employer is a boss who employs an employee to work for them. It is not clear who owns the website (I assume the employer), and whose business is it that is being promoted (I assume the ex-employee is running a business on the side)?
What is cheaper on car insurance driving for pleasure or for business?
Pleasure, they assume driving for business will be a much more regular affair.
Why are business owners entitled to make a profit?
Business owners are entitled to make a profit, primarily because of the risk that these owners assume. On the contrary, employees of said business essentially assume no business risk. They are, therefore, not entitled to the profit (or loss) of the business venture. Anyone who puts capital at stake is (and should be) rewarded based upon the success of the venture.
What business did it say in Al Capone's business card?
Al Capone claimed he was a used furniture dealer, so I assume that's what it said on his business card.
What is an explanation of going concern concepts?
This concept simply implies that the business will continue to operate for the foreseeable future and that it isn't suddenly going to cease trading. The significance of this concept is that the assets of the business are not valued at their "break-up" value, which is the amount that they would sell for if they were sold off piecemeal. The concept assumes that the owners of a company intend to continue its trading over the long term (at least 12 more months). It that is not the case, they will need to disclose that fact and present slightly different financial statements. For example: Suppose Jo Bloggs acquired a widget making machine at $100,000 and this machine has an estimated life of 5 years. Let us also assume that the machine has no other use outside Jo Bloggs' business and could only be sold for scrap at $15,000 after one year. It is normal to write-off the cost of this asset to the profit and loss account, over this timeframe. That is, depreciation of $20,000 per annum would be charged to the profit and loss account. So, at the end of the first year, the value of the machine in the books, would be $80,000, rather than the $15,000 scrap value. Although it doesn't seem very prudent, because Jo Bloggs will continue to trade and the machine will therefore be used in the business. It is the "Going Concern" concept that allows the higher valuation.
