Question

In: Accounting

Exercise 4-02 Identify the accounting concept that describes each situation below. Do not use any concept...

Exercise 4-02 Identify the accounting concept that describes each situation below. Do not use any concept more than once. a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) choose the accounting concept b. Indicates that personal and business recordkeeping should be separately maintained. choose the accounting concept c. Ensures that all relevant financial information is reported. choose the accounting concept d. Assumes that the dollar is the “measuring stick” used to report on financial performance. choose the accounting concept e. Requires that accounting standards be followed for all items of significant size. choose the accounting concept f. Separates financial information into time periods for reporting purposes. choose the accounting concept g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. choose the accounting concept Click if you would like to Show Work for this question: Open Show Work

Solutions

Expert Solution

  1. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.)

Answer : Going concern concept

  1. Indicates that personal and business recordkeeping should be separately maintained.

Answer : Business Entity concept

  1. Ensures that all relevant financial information is reported.

Answer : Realisation concept

  1. Assumes that the dollar is the “measuring stick” used to report on financial performance.

Answer : Money measurement concept

  1. Requires that accounting standards be followed for all items of significant size.

Answer : Dual Aspect concept

  1. Separates financial information into time periods for reporting purposes.

Answer : Accounting year concept

g. Requires recognition of expenses in the same period as related revenues.

Answer : Matching concept

h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts

Answer : Cost concept

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Each situation below describes an internal control weakness in the cash payments process. Identify which of...
Each situation below describes an internal control weakness in the cash payments process. Identify which of the five internal control principles is violated, explain the weakness, and then suggest a change that would improve internal control. 1. The warehouse clerk is responsible for ordering inventory when levels become low and advising the accounting department to issue a payment to the supplier when ordered goods are received. 2. For each purchase, the accountant compares the purchase order (prepared by the purchasing...
Label each fact situation with the term that best describes the legal concept illustrated. Each term...
Label each fact situation with the term that best describes the legal concept illustrated. Each term is used once. Submit your answers in the Assignment Submission section. Do not submit your answers in the Add Comments section.  Do not retype the questions. Number your answers to correspond to the relevant questions. Return to the left margin for the beginning of each answer. Terms Implied contact Objective theory of contracts Agreement Counteroffer Revocation of offer Legal capacity Illegal contract Exculpatory clause Genuine...
Label each fact situation with the term that best describes the legal concept illustrated. Each term...
Label each fact situation with the term that best describes the legal concept illustrated. Each term is used once. Terms Implied contact Objective theory of contracts Agreement Counteroffer Revocation of offer Legal capacity Illegal contract Exculpatory clause Genuine consent Statute of frauds Parol evidence rule Material breach Anticipatory breach Rescission Accord and satisfaction Statute of limitations Compensatory damages Consequential damages Liquidated damages Specific performance Fact situations Avik pulls into the local Shell station where he regularly buys gas. He waves...
What situation below best describes a situation where the sum of forces acting on an object...
What situation below best describes a situation where the sum of forces acting on an object add up to be zero? What situation below best describes a situation where the sum of forces acting on an object add up to be zero? The object has a constant speed. The object is moving in a circle but not speeding up or slowing down. The object is moving in a straight line without speeding up or slowing down. The object is moving...
For each situation below, if appropriate, identify the population, the sample, p and p in words,...
For each situation below, if appropriate, identify the population, the sample, p and p in words, and the value of p. Would you trust a confidence interval for the true proportion based on these data? In other words, are all of the assumptions for a one-proportion z-interval met? Explain. As concert goers enter a stadium, a security guard randomly inspects their backpacks for alcoholic beverages. Of 130 backpacks checked so far, 17 contained alcoholic beverages of some kind. The guards...
For each situation described​ below, identify the population and the​ sample, explain what p and p...
For each situation described​ below, identify the population and the​ sample, explain what p and p with modifying above ​represent, and tell whether it is appropriate to create a​ one-proportion z-interval. Complete parts a through d below. a) Police set up an auto checkpoint at which drivers are stopped and their cars inspected for safety problems. They find that 25 of the 139 cars stopped have at least one safety violation. They want to estimate the percentage of all cars...
Each of the following describes the situation currently faced by a perfectly competitive firm. In each...
Each of the following describes the situation currently faced by a perfectly competitive firm. In each situation, determine the firm's profit and whether the firm is maximizing profit. If the firm is not maximizing profit, determine how the firm must respond to increase its profit. a. P=$5, Q=500, TVC = $1500, AFC = $1, MC=AVC b. AR = $10, Q=100, TC = $2000, TVC=$1500, MC = $10
Choose any product or service situation of interest. Research the situation and identify the various entities...
Choose any product or service situation of interest. Research the situation and identify the various entities that might have a vested interest in the situation. Map out a collaborative network, provide a description of each of the participants, and explain why your collaborative network would work best for this situation. As part of your description, explain how each of the members of the network would contribute and benefit from their participation. In what forms would the contributions and benefits come...
Identify the accounting concept that underlines the recommended treatment of accounting for finance leases in IAS...
Identify the accounting concept that underlines the recommended treatment of accounting for finance leases in IAS 17 Leases, and explain the rationale behind the treatment adopted by the IAS.
Design a concept map (mind map) which illustrate any 4 agents of socialisation. Each of the...
Design a concept map (mind map) which illustrate any 4 agents of socialisation. Each of the agents selected, you should have a sentence description of what each is about or what its focus is as far as moulding and/or shaping the behaviour of a person. Instructions: The concept map should be on one A4 sheet – on landscape or portrait You can also draw by hand but it must be scanned and uploaded The message in the sentence you come...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT