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If an entity was perceived to be short term, what effect?

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1) Discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. If an entity was perceived to be short term, what effect would that have on the accounting system?

2) The accuracy of accounting records is enhanced by the integrity of internal controls. Comment on this statement and provide justification for it. Include illustrations of how this does or does not apply.

3) Please reflect upon one of your key take-aways from the learning of the chapters ACCOUNTING PRINCIPLE and INTERNAL CONTROL AND CASH and describe how you may apply it to your work or life.

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FINANCIAL ACCOUNTING
1) Discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. If an entity was perceived to be short term, what effect would that have on the accounting system?

If an entity is not going to continue, then the asset will not have future value (won't be around to enjoy the future!). If the entity was short-term, assets and liabilities would be revalued and reported in the short term consequence (what is the value in the short term and when will the liabilities be ...

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