the fundamental assumptions in accounting is the "Separate Entity Assumption". Following the assumption, and assuming you operate a hair salon in Downtown, provide Two examples of items/transactions that should NOT appear in the salon's accounting records. Briefly explain why.
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One of the fundamental assumptions in accounting is the "Separate Entity Assumption". Following the assumption, and assuming you operate a hair salon in Downtown, provide Two examples of items/transactions that should NOT appear in the salon's accounting records. Briefly explain why.
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- Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions.Required: Assess whether the junior accountant correctly proposes how to record each transaction. If incorrect, provide the correction.Which of the following statements does not fit the job title? An accounting clerk works out accounting entries. An accounting clerk, together with the owner, compares this year’s and last year’s income statements. An accounting clerk uses software to record accounting entries. An accounting clerk inquires about a suspected error made by the bank.Which of the following business events would not be recorded in the accounting records? Group of answer choices A. Obtaining a bank loan. B. Putting down a deposit on a new vehicle. C. Signing a contract to rent equipment in the next accounting period. D. Receiving a deposit from a customer.
- INSTRUCTIONS: Analyze the given scenarios and answer the following items. Answers must be justified in accordance with the following: Identify the type of business; Distinguish the accounting standards applicable for the identified business; and (e.g. IAS 4 or IFRS 7) Identify the type of practice the CPA is engaged (Commerce and industry, academe, public, government) PROFILE 1 Mr. Janard Lindio is the owner of Clifford Construction Company. Ms. Regine Joy Develos, a CPA working for Mr. Lindio, is tasked to do things such as financial reporting and analysis. She constantly reviews the source documents and makes sure that the financial statement serves its purpose. PROFILE 2 Baby Jane Justianiane is the owner of Boja General Merchandise, which is the main distributor of shoes and apparels in all areas of Taguig. Her accountant Anjielica Cavs, who is a CPA, is assigned to monitor and ensure that their products meet the desired criteria for quality. She also ensures that their…A chart of accounts varies with each type of business as well as each company. In a group, compare and contrast the accounts that would appear in Cole's Real Estate Office, Sarah's Clothing Emporium, Neal's Grocery Store, and Tanner Plumbing Service. What accounts would appear in all companies? What accounts would be specific to each business?a) Define the term accounitng, explain any five types of accounting informationusers using five different types of industires and how their accounting information would be relevant to decision. b) What do you understand by the term booking, explain the process of bookkeeping to be aopted by a petty trader and the likely summarized doucuments that can come out of the book keeping process? c) The process of preparing accounting records require care and good practice, explain to Maame Monkuah the characteristics of information needed to prepare a balance sheet or profit and loss acccount.
- 1-Accounting software is related to which system of accounting? a. Manual Individual customer records b. Manual system of accounting c. Computerized accounting d. Any system of accounting 2-A Creditor of the business uses the financial statement for a. Day to day decision making related to the business b. Making the decisions to buy or sell the shares c. Evaluating the risks of granting credit or lending money d. Verifying whether the company complies with tax laws 3-For every debit there will be an equal credit according to a. Dual aspect concept b. Matching concept c. Money measurement concept d. Cost concept 4-Mr. Asif is an accountant. Purchase of Merchandise on credit for OMR 75000 was entered in Furniture Account for OMR 75000 but he posted Accounts payable entry is correct. Which of the following rectification entry is correct? a. Debit Accounts payable RO 75000 Credit Furniture RO 75000 b. Debit Purchase RO 75000 Credit Accounts payable account RO…Lucy must close the accounting books in the old system to have a complete set of financial statements to bring into the new system. How would you guide Lucy through the process of closing the accounting books in the old system? Explain.Do the following events represent business transactions?Explain your answer in each case.(a) A computer is purchased on account.(b) A customer returns merchandise and is given crediton account.(c) A prospective employee is interviewed.(d) The owner of the business withdraws cash from thebusiness for personal use.(e) Merchandise is ordered for delivery next month
- Question To avoid duplication of account names and the use of improper account names, the company has provided the following list of accounts used to record its transactions as extracted from its chart of accounts: Capital Cash Supplies Right Way Manufacturers J Manufacturers P&S Auto CT Ltd Service Revenue Discount Allowed Rent Expense Wages Expense Supplies Expense Fixtures Auto Care Loan NBC Discount Received Electricity Expense Drawings Requirements: Create a name for the owner of the company and give the business a name that reflects the operations of the organization. Record the transactions stated above in the general journal. Post the transactions to the general ledger and balance off each account Extract a trial balance on August 31st. Prepare an Income Statement for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that dateFor each of the following events, identify whether it is an external event that would be recorded as a transaction, an internal event that would be recorded as a transaction or not recorded. 1. A vendor for a company's supplies is paid an amount owed 2. Customer pays its open accountDetermine what Accounting principle is applied 1. The business continues to render serviced to his clients on account. 2. An accountant prepares annual financial statements for Shop business in order to monitor the results of its operation.