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 If liquidation appears probable the going-concern assumption is no longer valid.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 is beer direct materials and raw materials?, What is Beer direct mater...

What is Beer direct materials and raw materials? Raw materials are the basic materials and parts that are to be used in the manufacturing process Raw materials that can be ph

Accounting treatment of CST, What is journal entry for Input CST which are ...

What is journal entry for Input CST which are paid at the time of purchases of goods from other state.

Accounting changes - significant accounting policies, The Company changed i...

The Company changed its process of accounting for pre-opening costs. These changes had no cash impact and the pro forma amounts accessible in the consolidated statement of income r

A light truck is purchased on january 1 at a cost of $27, A light truck is ...

A light truck is purchased on January 1 at a cost of $27,000. It is expected to serve for eight years and have a salvage value of $3,000. Calculate the depreciation expense for t

Show payment of a liability, Q. Show payment of a liability? Accountant...

Q. Show payment of a liability? Accountants are able to easily measure some changes in assets and liabilities such as the acquisition of an asset on credit and the payment of a

Explain what is meant by business, Business is an activity performed with t...

Business is an activity performed with the only intention of earning profit. The activity may differ according to the scope and volume.

Accounting concepts and standards, Any activity which you perform is assist...

Any activity which you perform is assist if you comprise a set of rules to guide your efforts. Moreover, you determine that these rules are of more value to you if they are standar

Accounts, entry for bad debts provision

entry for bad debts provision

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