Question and answer
what is going concern assumption?
Going concern assumption: An accounting guideline which allows the readers of financial statements to assume that the company will continue on long enough to carry out its objectives and commitments. [ In other words, the accountants believe that the company will not liquidate in the near future. This assumption also provides some justification for accountants to follow the cost principle. ]
Expert answered|jeifunk|Points 9798|
Question
Asked 5/30/2013 3:59:50 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
what is statement of financial position?
Weegy: A statement of financial position, also known as a balance sheet, is a financial document that provides an overview of an entity's finances at a given point in time. [ These statements are commonly used by companies large and small, but they can also be applied to personal finances, for people who want to generate a document that they can use to review their financial situation for the purpose of making budgeting decisions or financial plans. Many accounting software programs have mechanisms to automatically create one. There are two main areas on a statement of financial position. One covers the assets, everything owned by the person or company, including real estate, cash in hand, contents of bank accounts, and so forth. The other side includes the liabilities, funds owed. A statement usually breaks these sections up into several categories for ease of reference, so that people can quickly look up a topic of particular interest, such as accounts payable or overdue loans. The liabilities also include the ownership equity or the shareholder equity in the business. The assets should equal the liabilities once the ownership or shareholder equity has been factored in, and if they do not, it is a sign that the financial statement is out of balance. This is in accordance with the accounting equation, which states that assets = liabilities + ownership or shareholder equity. Incidentally, this explains the term "balance sheet," which reflects the idea that the two sections of the sheet should be equal or balanced. Commonly, a statement of financial position will be generated at the end of every month. Looking up past months can provide information about how a company's finances are progressing, and these documents can also be compared with statements from the same month in prior years. Using this document, decisions can be made about the next steps to take. If, for example, a company has a lot of assets, it may be a sign that it can comfortably expand because ... (More)
Question
Expert Answered
Asked 5/30/2013 5:14:56 PM
0 Answers/Comments
what is stockholders' equity?
Weegy: 'Stockholders' Equity' The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings. [ Stockholders' equity represents the equity stake currently held on the books by a firm's equity investors. ] (More)
Question
Expert Answered
Asked 5/30/2013 5:29:16 PM
0 Answers/Comments
what is stable-monetary-unit assumption?
Weegy: The monetary unit assumption is that in the long run, the dollar is stable—it does not lose its purchasing power. This assumption allows the accountant to add the cost of a parcel of land purchased in 2013 to the cost of land purchased in 1956. [ For example, if a two-acre parcel cost the company $20,000 in 1956 and in 2013 a two-acre parcel adjacent to the original parcel is purchased for a cost of $800,000, the accountant will add the $800,000 to the land account and will report the land account’s balance of $820,000 on the company’s balance sheet. To say that the purchasing power of the dollar has not changed significantly from 1956 to 2013 is quite a stretch. However, the assumption is that the purchasing power of the dollar has not changed. Part of the monetary unit assumption is that accountants report assets as dollar amounts, rather than reporting in detail all of the specific assets. If an asset cannot be expressed as a dollar amount, it cannot be entered in the general ledger. For example, the management team of a very successful corporation is by far its most valuable asset. However, the accountant is not able to objectively convert those talented people into a dollar or monetary amount. Hence, the team will not be included in the amounts reported on the balance sheet. ] (More)
Question
Expert Answered
Asked 5/30/2013 5:06:41 PM
0 Answers/Comments
What is revenue?
Weegy: Revenue represents the gross income a company brings in through its sales (More)
Question
Expert Answered
Updated 4/26/2014 8:17:41 PM
0 Answers/Comments
what is retained earnings?
Weegy: retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. en.wikipedia.org/wiki/Retained_earnings? (More)
Question
Expert Answered
Asked 5/30/2013 4:48:56 PM
0 Answers/Comments
25,641,484 questions answered
Popular Conversations
Evaluate. -|-7 3| User: A man invests a certain amount of money at ...
Weegy: Let the man invest an amount x at 2% interest. Then, [ he invests an amount (x+800) at 4% interest. Total ...
6/27/2016 12:18:08 PM| 3 Answers
(-d + 4)(-d - 4) User: Simplify b(a + b) - a(a - b). User: (y 3 - ...
Weegy: (y^3 - 125) (y - 5) = y^4 - 5y^3 - 125y + 625; User: Simplify 5 + 2{x - 4[3x + 7(2 - x)]}. User: 48a 3 bc 2 ...
6/27/2016 10:54:50 PM| 3 Answers
-9=-2-k
Weegy: k=56 User: -9=-2-k over 8 Weegy: k=56 User: -9+3 over 4 n=-13
6/28/2016 12:46:48 PM| 3 Answers
Soviet armies fighting Germany benefited from a. Polish aid. b. cold ...
Weegy: Soviet armies fighting Germany benefited from COLD WEATHER. User: Erwin Rommel Weegy: Erwin Rommel was a ...
6/27/2016 8:36:33 AM| 2 Answers
All of the following are correct EXCEPT: a. China now encourages ...
Weegy: All of the following are correct EXCEPT: a. China now encourages families to have many children. ] User: ...
6/27/2016 10:15:43 AM| 2 Answers
Which of the following terms could be applied to the United States ...
Weegy: Free press could be applied to the U.S. during the Cold War. User: Which of the following technologies was ...
6/27/2016 10:20:16 AM| 2 Answers
Cardiovascular exercise causes your lungs to breathe less ...
Weegy: Cardiovascular exercise causes your lungs to breathe less often. FALSE. Breathing rate increases during ...
6/27/2016 10:41:00 AM| 2 Answers
Weegy Stuff
S
P
L
Points 975 [Total 1636] Ratings 2 Comments 955 Invitations 0 Offline
S
Points 350 [Total 711] Ratings 2 Comments 330 Invitations 0 Offline
S
L
P
P
P
Points 156 [Total 3699] Ratings 0 Comments 156 Invitations 0 Offline
S
Points 137 [Total 212] Ratings 1 Comments 127 Invitations 0 Offline
S
Points 137 [Total 418] Ratings 0 Comments 137 Invitations 0 Offline
S
Points 127 [Total 179] Ratings 0 Comments 127 Invitations 0 Offline
S
P
1
Points 107 [Total 852] Ratings 3 Comments 57 Invitations 2 Offline
S
L
Points 86 [Total 4206] Ratings 0 Comments 86 Invitations 0 Offline
S
Points 40 [Total 50] Ratings 1 Comments 30 Invitations 0 Offline
S
Points 32 [Total 139] Ratings 0 Comments 32 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.