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 If liquidation appears probable the going-concern assumption is no longer valid.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 are service companies, Q. What are Service companies? Service comp...

Q. What are Service companies? Service companies carry out services for a fee. This group comprise law firms, accounting firms and dry cleaning establishments. The early sectio

Prepare financial statements, Accounting information systems' output is req...

Accounting information systems' output is required by external and internal users for decision making. you are required to use the following trial balance to prepare financial stat

Explain about period costs, Q. Explain about Period costs? Period costs...

Q. Explain about Period costs? Period costs are costs not noticeable to specific products and expensed in the period incurred. Administrative and Selling costs are period costs

Explain about cost principle, Q. Explain about cost principle? As appli...

Q. Explain about cost principle? As applied to largely assets this principle is often called the cost principle. It utter that purchased or self-constructed assets are initiall

Accounting information, Reliable information is essential before decision m...

Reliable information is essential before decision makers can make a sound decision involving the allocation of scarce resources. Accounting information is precious because decision

Difference of fund flow statement and cash flow statement, Fund flow deals ...

Fund flow deals with transaction within financial year (One year) while Cash flow Statement record only the cash transaction.

Example of income statement, Q. Example of Income statement? Income sta...

Q. Example of Income statement? Income statement demonstrates the income statement Lyons prepared. The focal point in this income statement is on determining the cost of goods

What is acounts receivable ledger, What is ACOUNTS RECEIVABLE LEDGER Bu...

What is ACOUNTS RECEIVABLE LEDGER Businesses have several customers and individual businesses aren't assigned an account number they are just in alphabetical order. Accounts

General-purpose financial statements, Q. General-purpose financial statemen...

Q. General-purpose financial statements? Accountants prepare general-purpose financial statements at usual intervals to meet many of the information needs of external parties a

Prepaid or period expense, Are mailing lists are considered as prepaid or p...

Are mailing lists are considered as prepaid or period expens?

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