### What is the purpose of the four key accounting concepts

Assignment Help Financial Accounting
##### Reference no: EM132609204

There are four general assumptions that specifically underline the preparation final accounts of an incorporated business. these are Going concern (matching) comparability (consistency) and prudence concepts.

Question a) What is the purpose of these four key accounting concepts.

Question b) Describe and asses the importance of each those concepts with regards to the interpretations of prepared financial statements.

### Write a Review

#### Potential problems with uniform capitalization rules

SCENARIO: The Pima and Southern Railroad (PSRR) is a small railroad operating in rural Arizona. It exists by carrying freight to remote areas of the southwest. This year the PSRR needs to replace a 30- mile section of its track. The PSRR has bids fro..

#### Calculate the allocation of profit

Calculate the allocation of profit for 2014 and 2015, assuming profits are divided as Based on the ratio of the partners' original investments.

#### Prepare any necessary adjusting or correcting entries

Prepare any necessary adjusting or correcting entries Assume that no entries have been made regarding the situation other than those specifically described

#### Make the journal entries that would appear in txa ltd

TXA Ltd acquired a machine from Blue Ltd, Provide the journal entries that would appear in TXA Ltd.'s books to account for the acquisition of the Machine.

#### Calculate dobbs total standard cost per unit

Manufacturing overhead: Overhead is applied at a rate of \$6 per direct labor hour. Calculate Dobbs's total standard cost per unit. (Round computations and final answer to 2 decimal places

#### Evaluate the total cost of the potential job

Evaluate the total cost of the potential job using traditional overhead application (i.e. direct labor hours to assign overhead)

#### Variance analysis is used as a tool to evaluate performance

Variance analysis is used as a tool to evaluate performance.

#### Prepare payoff chart and pay off table for straddle option

Prepare the payoff chart and pay off table for Straddle option Strategy by using the Premium of at the money call option and Current Market price of Nifty

#### With the revenue recognition accounting principle of VSOE

With the revenue recognition accounting principle of VSOE. Give an overview of how this method affects revenue recognition for companies selling bundled contracts.

#### Prepare the intercompany profits gains and losses schedule

Prepare the intercompany profits, gains and losses schedule. Prepare paper eliminating journal entries for the inter-company sale of the machinery in Year 6.

#### Calculate the net present value and internal rate of return

Apart from the costs specifically mentioned above, management expects that the equipment would save \$1,200,000 per year in manufacturing costs.

#### Inventory system

a company and tell what type of inventory system they use and why you think this is a correct or an incorrect choice. For example, A supermarket uses a LIFO for its produce.