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Accountants frequently cite the going-concern assumption to justify using historical costs rather than market values in measuring assets. Market values are of less implication to an entity using its assets rather than selling them. On the other hand if an entity is liquidating it must use liquidation values to report assets. The economic activity of a business is usually recorded and reported in money terms. Money measurement is the use of a monetary unit such as the dollar instead of physical or else other units of measurement. Using a particular financial unit provides accountants with a common unit of measurement to report economic activity. Without a financial unit it would be not possible to add such items as equipment, buildings and inventory on a balance sheet. Monetary statements identify their unit of measure such as the dollar in the United States so the statement user can make valid comparisons of amounts. For instance it would be hard to compare relative asset amounts or profitability of a company reporting in US dollars with a company reporting in Japanese yen.
Acme Inc. has total liabilities of $120,000, total sales of $80,000, net income of $12,000, current assets of $90,000 and total assets of $150,000. What is the debt to equity rat
Consider the following 2008 data for Newark General Hospitals (in millions of dollars Simple Budget_______Flexible Budget_ Actual Budget__ Revenue______$4.7$____4.8_____$4.5____.
Scop of accounting
i have an assignment fro perdisco platform managing general entries of basic accounts will u guys be able to help with it
A time of 12 consecutive months used by an organization to account for and report the results of its operations.
what is the matching rule applied?
Sucked into a wormhole while spending time in outer space, you land in a perfect world where accountants are worshipped and paid extravagantly. As an accountant, you're immediately
Q. Illustrate perpetual inventory procedure? Data from Exhibit serves like the basis for some of the entries. You would debit the Merchandise Inventory account to record the en
The book of Deven Verma could not be tallied. The account transferred the difference of Rs. 1.270 in the suspense account on the debit side. the following mistakes were found later
In Excel, I need help with formulas
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