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2 years ago

Which accounting concept is used in each of the following accounting treatment?

1 answer:

6 0

The accounting concepts that provide guidance for recording the following business events are as follows. The business transactions are numbered from (a) to (e) below:

1) Materiality Concept is applied because the impact of the cost of the tape dispenser being "expensed" is not significant on the reader of the financial statement.

2) Entity Concept requires separation between the finances of the owner from the finances of the business. The business is a separate economic unit distinct from the sole proprietor.

3) Prudence Concept demands that expenses (like the bad debt written off) and liabilities are not underestimated and revenues and assets should not be overestimated.

4) Historical Cost Concept: Generally accepted accounting principles require the initial recognition of an asset at its purchase cost and not fair value.

5) Accrual Concept and Matching Principle: The accrual concept requires that expenses that have been incurred for a period should be accounted for in that period, whether cash payment is made or not. The matching principle states that expenses (Van Repair Expense) should be matched to the revenue that they generate.

Thus, accounting concepts are the basic assumptions, rule, and principles for recording business transactions and events and preparing accounts and financial statements.

Learn more about accounting concepts at brainly.com/question/24425761

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creativ13 [48]

Answer:

The correct answer is True.

Explanation:

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NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

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2 years ago

The following information should be used to according to the provisions of GAAP (Statement of Cash Flows) and using the followin

yanalaym [24]

Answer:

Explanation:

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2 years ago

For federal tax purposes, which of the following is true regarding lump-sum life insurance benefits?

Lorico [155]

Based on the information given, it should be noted that all proceeds are income tax free in the year that they're received.

A tax simply means a compulsory levy that's paid by the people or companies to the government. It's important to achieve economic development.

For federal tax purposes regarding lump-sum life insurance benefits, it should be noted that all proceeds are income tax free in the year that they're received.

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2 years ago

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The unemployed people in this economy are MASON AND ABBOT.
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3 years ago

A representative from a prestigious industry association just emailed. She asks for your participation on an expert panel that w

AveGali [126]

Answer:

Thank the representative and accept the offer to cover expenses of your participation.

Explanation:

The response that would be most effective for helping you to make an ethical decision is to thank the representative and accept the offer to cover expenses of your participation.

For being invited to participate on an expert panel that will be held at an upcoming professional conference is such a great privilege and opportunity, thus, you should first express your gratitude for the honor and accept the offer covering your expenses.

Having your expenses covered, would make you channel all your time and energy into preparing, researching and organized for the event.

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2 years ago