Assumptions, Principles, and Constraints of Accounting
Please help me explain the following concepts:
- The basic assumptions of accounting
- The principles of accounting
- The constraints of accounting
- A conclusion stating how you think sound financial reporting depends on principles, assumptions, and constraints. Refer to the U.S. GAAP in your response.
Solution Preview
Let's discuss each area, and I will provide you with resources throughout the discussion. This will help you as you write your essay.
Accounting assumptions:
There are seven accounting assumptions, which can be found here: http://www.accountingtools.com/questions-and-answers/what-are-the-key-accounting-assumptions.html
The seven assumptions, which actually have no particular order, are: accrual, conservatism, consistency, economic entity, going concern, reliability, and the time period assumption. The most misunderstood assumption is the going concern assumption. The going concern assumption assumes that an entity is financially stable and viable enough, to the point where investors can have confidence that the business will remain open in the near, foreseeable future. Going concern is a positive statement, ...
Solution Summary
This section explains the listed accounting concepts in detail. Each area is explained, along with a thorough conclusion on how financial reporting relies on assumptions, constraints, and principles. This discussion is based on GAAP, as requested.
...assumptions, principles, or constraints (Economic entity ... by number the accounting assumptions, principle, or constraint... Economic entity assumption 6) Revenue ...
... and Constraints) Presented below are assumptions, principles, and constraints: ... Identify by number the accounting assumption, principle, or constraint that ...
... and Constraints) Presented below are the assumptions, principles, and constraints. ... Identify by number the accounting assumption, principle, or constraint...
... and Constraints) Presented below are assumptions, principles, and constraints: ... Select the assumption, principle or constraint that most appropriately ...
Assumptions,Principles, and Constraints of Operational ... Instruction: Select the assumption, principle, or constraint that most appropriately justifies these ...
... cost of goods sold, identify assumptions, principles, and constraints... The time period assumption states that the economic ... (g) 6. Revenue recognition principle. ...
... help me state the accounting assumption, principle, information characteristic ... This is the monetary unit assumption. This assumptions says that a stable unit of ...
... below are several information characteristics, accounting principles, constraints, and assumptions. ... not at all.) a. Economic entity assumption g. Matching ...
... guidelines take the form of assumptions and principles. ... period assumption, and the going concern assumption? ... full disclosure principle, and the cost principle? ...
