In Each of the Following Situations,choose the Accounting Concept That

question 78

Essay

In each of the following situations,choose the accounting concept that pertains: business entity concept,going concern concept,monetary unit concept,or periodicity concept.
(a.) A Japanese company reports its earnings in yen.
(b.) The owner of a sole proprietorship pays for the real estate taxes on her personal residence from her personal savings rather than from the business's checking account.
(c.) A corporation whose stock is traded on the American Stock Exchange prepares a report of its financial condition for the SEC on a quarterly basis.
(d.) Mike and Mattie are partners in a shoe repair business. The business is profitable with plans to show increased profitability into the foreseeable future.

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Definitions:

Investing Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Cash Dividends

Dividends paid to shareholders by a corporation, ordinarily from its profit earnings.

Net Cash

The amount of cash that is available after all debts and obligations have been settled, reflecting a company's liquidity.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, as part of a company's financial operations.