Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accounting Entity - Accounting Principle
For accounting reasons it is suppose that business has separate existence and its entity is different from that of its owner(s). In simple term this means in which the liabilities and assets of the business are not the liabilities and assets of the owner of the business.
Accounting is completed for the business entities as distinguished is completed for the business entities as distinguished from the persons related with these entities; as such the transactions of the business and those of the owners should be accounted for and reported separately. A business enterprise is an economic unit separate and apart from the owners. Every transaction should be analysed from the point of view of a business enterprise and not that of persons who are associated with it. For example when the owner introduces cash in business, this cash is shown as Capital Liability of the business towards the owner. The introduction or withdrawal of cash does not affect the overall cash (personal plus business) position of the owner. This concept enables recording of transactions between business and its owner.
This concept ensures that accounting records reflect only the activities of the business and the expenses related to common resources used for business and personal use and apportioned on some equitable basis between business and its owners. This concept applies to all form of business enterprises e.g. sole proprietorship, partnership and joint stock companies. However, the separate existence of business entity is recognized by law only in case of corporate form of enterprise, for sole proprietorship and partnership firms the law does not distinguish the owners and business separately. Hence in legal sense the owners and business may not be different for some form of business enterprise, but for accounting purpose the business and the owners would be always treated separately.
Determine the term- Component Cost and Composite Cost A company may contemplate to raise desired amount of funds by different sources comprising preferred stock, debentures and
Q. Explain demerits of accept-reject criteria? Demerits of ARR:- (i) It utilizes accounting income rather than cash flows: - The principal short coming of ARR schema is th
What is the Ratio uses To compare results over a period of time To measure performance against other organisations To compare results with a target To compare against
what are the arguments in favour of profit maximization?
Principles of corporate governance Leadership: Every corporation should be headed by a proficient BOD which should exercise leadership, venture, honesty and judgments in dire
Treasuries are the securities that theUS government issues for the completion of government projects. They are of different types like, treasury bills, treasury bon
Cash flow statement analysis Cash flow statement is a primary financial statement and shows cash generating ability of the organisation. Cash generated from operations can b
Q. Types of investment decisions? (1) Short-term investment decisions: - This kind of investment decisions related to the short-term assets. These decisions are as well called
The credit term from the supplier is 2/30, net 60. Question: Calculate the effective annual rate if the firm does not take the discount.
Market based Ratio's PE: The Price-to-Earnings ratio is calculated by market price per share to earnings per share and is expressed in terms of times. It shows h
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd