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 If liquidation appears probable the going-concern assumption is no longer valid.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

Ledger accounts in an accounting perspective, Q. Ledger accounts in An acco...

Q. Ledger accounts in An accounting perspective? The idea of the Internet dates to the 1960s when the military tied together several computers forming a network that allowed us

If on the opening day of business, If on the opening day of business, you p...

If on the opening day of business, you put in supplies worth $250 and $3000 cash, would that be considered a transaction OR would it be considered your beginning balances because

Fifo cost flow assumption , 1.   Under the FIFO Cost Flow Assumption durin...

1.   Under the FIFO Cost Flow Assumption during a period of inflation, which of the following is false? WHICH OF THE FOLLOWING IS NOT TRUE a.   Income tax expenses will be hig

What is the marginal cost and average total cost, Below is a table with tot...

Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10

Show timing of expense recognition, Q. Show Timing of expense recognition? ...

Q. Show Timing of expense recognition? The timing of expense recognition The matching principle entail that a relationship exists between expenses and revenues. For definite ex

What do you mean by equities, Q. What do you mean by Equities? Assets w...

Q. What do you mean by Equities? Assets were described earlier as the things of value owned by the business or the economic resources of the business. Equities are every claims

Define the term- fica tax, Define the term- FICA TAX   This is a match...

Define the term- FICA TAX   This is a matching tax paid equally by employee and employer. Two parts-OASDI and HIP. Current rate for OASDI is 6.2% on the first $102,000 earned

Show the company''s balance sheet, Q. Show the company's Balance sheet? ...

Q. Show the company's Balance sheet? Balance sheet the balance sheet Exhibit contains the liabilities, assets and stockholders' equity items taken from the work sheet. Note tha

Accounting Systems, The transactions for February need to be processed on M...

The transactions for February need to be processed on MYOB with the Username:n10026509 and no password and make sure the audit trail is on. Then Part B is a performance report. The

What is sales allowance, Q. What is sales allowance? A sales allowance ...

Q. What is sales allowance? A sales allowance is a inference from the original invoiced sales price granted when the customer keeps the merchandise but is dissatisfied for any

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