The Following Accounting Principles and Assumptions Are Included in the Conceptual

question 260

Essay

The following accounting principles and assumptions are included in the conceptual framework of accounting:
For each situation in A through C below, identify which assumption or principle applies by selecting from the list pro why that assumption or principle applies.
A Global Corp. has divisions in several countries around the world. Each of these countries has a currency different from the U.S.dollar. Global Corp. is a U.S. company and must include the financial data of its worldwide divisions in its financial stat
B Steve and Mike operate a security business as a partnership. They are considering the advantages of changing over to the corporate form of business.
C Island Pasta is a locally owned and operated fast-food business. The owners have decided to expand into nearby cities. Expansion will require more capital, but management does not expect it will stay in business for more than a year or so regardless if it expands or not.

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Definitions:

Remember

The act or faculty of retaining and retrieving information or experiences from the past.

Children

Young human beings below the age of puberty or below the legal age of majority.

Remember Best

Refers to the ability or process of recalling information or experiences with the highest degree of accuracy or clarity.

3-Year-Old

Refers to a child who has reached the age of three, a stage often characterized by rapid growth in language, social, and motor skills.