Identify the accounting assumption or principle that is described below. Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) (a) Indicates that personal and business record-keeping should be separately Monetary Unit Assumption Historical Cost Principle Economic Entity Assumption Going Concern Assumption Full Disclosure Principle Periodicity Assumption (b) maintained. Assumes that the dollar is the "measuring stick" used to report on financial (c) performance. (d) Separates financial information into time periods for reporting purposes. Measurement basis used when a reliable estimate of fair value is not available. (e) Dictates that companies should disclose all circumstances and events that make a (f) difference to financial statement users.
Identify the accounting assumption or principle that is described below. Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) (a) Indicates that personal and business record-keeping should be separately Monetary Unit Assumption Historical Cost Principle Economic Entity Assumption Going Concern Assumption Full Disclosure Principle Periodicity Assumption (b) maintained. Assumes that the dollar is the "measuring stick" used to report on financial (c) performance. (d) Separates financial information into time periods for reporting purposes. Measurement basis used when a reliable estimate of fair value is not available. (e) Dictates that companies should disclose all circumstances and events that make a (f) difference to financial statement users.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 1EA: Match the correct term with its definition. A. cost principle i. if uncertainty in a potential...
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Identify the accounting assumption or principle that is described below.
Transcribed Image Text:Identify the accounting assumption or principle that is described below.
Is the rationale for why plant assets are not reported at liquidation value. (Note: Do
not use the historical cost principle.)
(a)
Indicates that personal and business record-keeping should be separately
Monetary Unit Assumption
Historical Cost Principle
Economic Entity Assumption
Going Concern Assumption
Full Disclosure Principle
Periodicity Assumption
(b)
maintained.
Assumes that the dollar is the "measuring stick" used to report on financial
(c)
performance.
(d)
Separates financial information into time periods for reporting purposes.
Measurement basis used when a reliable estimate of fair value is not available.
(e)
Dictates that companies should disclose all circumstances and events that make a
(f)
difference to financial statement users.
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