Liquidating distribution investment partnership
Test Bank Fundamental Accounting Principle by Wild A Graded Click on The Link Below to Purchase (Chapter 1 – 25) All Possible Questions With Answers Instant Download more help Contact us at: [email protected] Student: ___________________________________________________________________________ 1. Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities. Bookkeeping is the recording of transactions and events and is only part of accounting. Strategic management is the process of determining the right mix of operating activities for the type of organization, its plans, and its markets. Planning activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans. Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice. General accounting principles arise from long-used accounting practices. Objectivity means that financial information is supported by independent unbiased evidence. The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.
The monetary unit assumption means that all international transactions must be expressed in dollars. The business entity principle means that a business will continue operating for an indefinite period of time. Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements. Opportunities in accounting include auditing, consulting, market research, and tax planning. The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.
The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.