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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.
The tax payable on a non-salary benefit given to an employee or an associate of the employee. The employer is liable to pay any FBT and may decide to recover the FBT amount from th
Company took loans of rs 400000from mbl and issued 8% debentures of rs 500000b as collateral security pass journal entries regarding issue of debentures if any and show the loan in
Sales taxes and Schedule of accounts receivable Schedule of accounts receivable Accounts Receivable and individual accounts should match. Only accounts which have
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Q. Explain Merchandising companies? Merchandising companies buy goods that are ready for sale and then sell them to customers. Merchandising companies comprise clothing stores,
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On December 31, 2003, Jamfest Travel Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30, 2004, the firm issued an add
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Question: You have decided to borrow $20,000 so that you can consolidate the loans you currently have with other lenders. You have agreed to repay the loan in 8 equal semi-annu
Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12% interest. If the first payment is due one year from today, what will be the amount
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