a.
Introduction
The concept of accounting entity refers to those entities for which separate set of records are maintained for accounting. These entities should indulge in identifiable activities and must be divided from the personal transactions with its officers.
To explain:If accounting entity concept is applicable on units created by or under law.
b.
Concept introduction
The concept of accounting entity refers to those entities for which separate set of records are maintained for accounting. These entities should indulge in identifiable activities and must be divided from the personal transactions with its officers.
To explain:If accounting entity concept is applicable onthe product line segment of an enterprise.
c.
Concept introduction
The concept of accounting entity refers to those entities for which separate set of records are maintained for accounting. These entities should indulge in identifiable activities and must be divided from the personal transactions with its officers.
To explain:If accounting entity concept is applicable on the combination of legal units of a company.
d.
Concept introduction
The concept of accounting entity refers to those entities for which separate set of records are maintained for accounting. These entities should indulge in identifiable activities and must be divided from the personal transactions with its officers
To explain:If accounting entity concept is applicable on all theactivities of an owner or group of the company.
e.
Concept introduction
The concept of accounting entity refers to those entities for which separate set of records are maintained for accounting. These entities should indulge in identifiable activities and must be divided from the personal transactions with its officers.
To explain:If accounting entity concept is applicable on the economy ofUnited States.
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Chapter 3 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
- What does the conceptual framework intend to establish? a. the objectives and cocepts foruse in developing IFRSs b. the hierarchy of sources of accounting standards and principles c. the true concept of "present fairly in accordance with IFRSs' d. IFRSarrow_forwardUS generally accepted accounting principles are currently developed by which entity? C . Th e Public Company Accounting Oversight Board.arrow_forwardExplain and apply the definition of a subsidiary within relevant accounting standards. NB: Answer question in two paragraph.arrow_forward
- What are the two fundamental qualities of accounting information? OA. Faithful representation and relevance OB. Understandability and verifiability OC. Comparability and faithful representation o D. Timeliness and understandabilityarrow_forwardThe concept of the accounting entity is aplicablearrow_forwardExplain the different accounting concepts and conventions with examplesarrow_forward
- The users of accounting information can be classified into internal and external users. Clearly explain these giving clear examples and identifying the information needs for each.arrow_forwardCommon Acronyms used in Accounting Below, you will see acronyms for several organizations that are somehow related to accounting. Indicate what the acronym stands for and what the organization to which the acronym refers does. FASB Financial Accounting Standard Board IASB International Accounting Standard Board IRS Internal Revenue Service SEC Securities and exchange commission AICPA For what do the following acronyms stand? Also, explain the concept behind the acronym. GAAP Generally Accepted Accounting Principles. It is set of rules and regulations followed by accounting firms in the United States IFRS International Financial Reporting Standards Set of rules and regulations generally followed by firms around the world. Adjusting for Deferrals On October 1, 2019, a company prepays for 6 months of rent at $1,000 per month. Assume that the rental begins on October 1, 2018, that the company adjusts on a monthly basis, and a December 31, 2019 fiscal year end. Create a…arrow_forwardexplain the fundamental qualities of accounting informationarrow_forward
- Which of the following factors should influence business and accounting decisions?a. Economicb. Legalc. Ethicald. All of the abovearrow_forwardThe principles and objectives that guide the creation of accounting information under accrual accounting are called?arrow_forwardDiscuss how and why accounting concepts are relevant in accounting disciplinearrow_forward
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