Explain about business entity concept, Accounting Basics

Assignment Help:

Q. Explain about business entity concept?

A business entity perhaps made up of several different legal entities. For example a large business such as General Motors Corporation may consist of several separate corporations every of which is a separate legal entity. For reporting purposes but the corporations may be considered as one business entity because they have a common ownership. Section 14 illustrates this concept. When accountants record business transactions for an entity they suppose it is a going concern. The going-concern (continuity) assumption states that an entity will carry on operating indefinitely unless strong evidence exists that the entity will terminate. The termination of an entity takes place when a company ceases business operations and sells its assets. The process of termination is called as liquidation. If liquidation appears probable the going-concern assumption is no longer valid.


Related Discussions:- Explain about business entity concept

What do you understand by goodwill, Q. What do you understand by Goodwill? ...

Q. What do you understand by Goodwill? Goodwill -- in accounting, difference between what a company pay when it buys theassets of another company and book value of those assets

Inventory, HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL100 w...

HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL100 words accepted#

FIFO LIFO AVERAGE COST, I am trying to figure out FIFO LIFO and AVERAGE COS...

I am trying to figure out FIFO LIFO and AVERAGE COST of the ending inventory and the cost of goods sold.

Explain about closing process, Q. Explain about closing process? Expens...

Q. Explain about closing process? Expense, revenue and dividends accounts are nominal (temporary) accounts that are merely sub classifications of a real (permanent) account Ret

Example of horizontal analysis, Q. Example of horizontal analysis? Seve...

Q. Example of horizontal analysis? Several companies have been restructuring their organizations and reducing the number of employees to cut expenses. AT&T, General Motors, IBM

Underlying assumptions or concepts of accounting, Q. Underlying assumptions...

Q. Underlying assumptions or concepts of accounting? The major underlying assumptions or concepts of accounting are (a) business entity (b) going concern (continuity) (c) money

Importance of accounting in the public sector, Problem 1: i) Assess th...

Problem 1: i) Assess the importance of accounting in the Public Sector. ii) How far has the Governmental Accounting Standards Board (GASB) changed financial reporting, ass

What is federal unemployment tax, What is Federal unemployment tax Fed...

What is Federal unemployment tax Federal unemployment tax (FUTA) requires the payment of taxes to provide benefits for workers during periods of temporary unemployment. This

Cartwright inc has $1, Cartwright inc has $1,000,000 of 10% bonds outstandi...

Cartwright inc has $1,000,000 of 10% bonds outstanding on December 31, 20x8. On January 1, 20x9 adams corp and 80% owned subsidiary of Cartright, inc purchases a $250,000 part of c

Reasonable accuracy, Some the other concepts, as for example: the Matching ...

Some the other concepts, as for example: the Matching concept, the Dual Aspect concept and the Realization concept are discussed in further sections, and as they have not been take

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd