Which accounting assumption assumes that an enterprise will continue in operation long enoughto carry out its existing objectives and commitments?Monetary unit assumptionEconomic entity assumptionPeriodicity assumptionGoing concern assumption Show
Question 22.5 / 2.5 ptsUse the following data to determine the total amount of working capital.Carne Auto SuppliesBalance SheetDecember 31, 2022$260,000$240,000($70,000 + $100,000 + $140,000 + $80,000) – ($130,000 + $20,000) = $240,000(Cash + Acc. rec. + Inv. + Prep. ins.) - (Acc. pay. + Sal./wag. pay.)$160,000$420,000Question 32.5 / 2.5 ptsUse the following data to determine the total dollar amount of assets to be classified as currentassets. Get answer to your question and much more The going concern principle is the assumption that a business will continue to exist in the near future, in other words, that it will not liquidate or be forced out of business. Stay on top of your financial activity by using an online invoicing software such as Debitoor. Sign up now! As an
accounting principle, the going concern principle serves as a guideline which allows readers of a business’s financial statements to assume that the business will continue to operate long enough to carry out its current obligations, objectives and commitments. Going concern is an important part of the generally accepted accounting principles. Without it, businesses would not be able to perform accrued or prepaid expenses.The going concern principle allows a business to defer some of their
prepaid expenses to future accounting periods, rather than recognising them all at once. Think about this: If we assume that a business will not be able to operate in the foreseeable future then why would we prepay or accrue anything? Well, if we assume the business might not operate long enough to realize these future expenses, then we would not prepay or accrue anything. The going concern principle provides some justification for accountants to follow the cost principle. If a company is a going concern, it has no intention to liquidate, so why should it report the current value of its long term
assets? Yet, if the value of an asset has been damaged or weakened, then the carrying amount of the asset could be reduced to an amount lower than its carrying value. An example showing the application of the going concern principle is the calculation of depreciation of assets. This depreciation calculation is based on the expected economic life
of the asset, as opposed to its current market value. Businesses assume that they will continue operating for an indefinite period of time, and that their assets will therefore be used in the business until they have fully depreciated. Accounting principles serve a significant purpose of standardising the way in
which businesses perform their financial reporting activities. It is important for all businesses to keep track of their financial statements, and ensure that they are correctly and efficiently drawn up. With Debitoor invoicing software you can instantly extract and download your financial statements at any point in time! Johnny's Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000. During the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and dividends of $10,000. The net income reported by Johnny's Car Repair Shop for the year was_____. a. $35,000 b. $45,000 c. $20,000 d. $90,000 e. none of the options listed If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000, the amount of net income or net loss for the period was: a. net loss of $35,000 b. net income of $35,000 c. net income of $14,000 d. net loss of $14,000 e. none of the options listed a.Monetary unit assumption b.Economic entity assumption c.Time period assumption d.Going concern assumption  Question added by Shahbaz Hayder , Group Head of
Finance , Sharif Group of Companies
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies Yes Option D is the right answer. by Farzain Javed Anjum , Senior Accountant/Acting Chief Accountant , Al Eatesam Modern Marketing Compnay Going concern assumption is the correct answer by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb
Logistics Pvt. Ltd. Going Concern Assumption....................!!!!! by Wasim khan
wazir , Assistant Manager Accounts & Finance , Acumen pharmaceuticals Ltd Option D. Going concern assumption by
Shazia Anees , Assistant Manager Finance , Arham Trading Company option d ============================= 4. The purchase of an office building by issuing long-term notes payable should be reported as a by Wasiu Lamidi , Instructor , UNITeS Networking Academy @ Federal Science and Technical College, Ilesa D. Going concern principle of accounting Popular SearchesMore Questions Like This
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you. Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out?As an accounting principle, the going concern principle serves as a guideline which allows readers of a business's financial statements to assume that the business will continue to operate long enough to carry out its current obligations, objectives and commitments.
Which accounting principle assumes that a business will continue for a long time?Key Takeaways. Going concern is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future.
What principle is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?Going Concern Principle
This accounting principle assumes that a company will continue to exist long enough to carry out its objectives and commitments and will not liquidate in the foreseeable future.
Which principle of Accounts says that the entity will operate for a sufficient period of a time and will not liquidate in any situation?The concept of going concern assumes that a business firm would continue to carry out its operations indefinitely, i.e. for a fairly long period of time and would not be liquidated in the foreseeable future.
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Which accounting principle assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?
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