Which principle guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

Q: Which principle guideline requires the companys financial statements to have footnotes containing information that is important to users of the financial statements?

Which principle/guideline requires the companys financial statements to have footnotes containing information that is important to users of the financial statements? The full disclosure principle requires businesses to disclose information that is relevant to the decisions of investors and creditors.

Q: Which principle guideline requires a companys balance sheet to report its land at the amount the company paid to acquire?

Which principle/guideline requires a companys balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount? The cost principle requires the accountant to show assets at cost and expenses at cost rather than at higher amounts.

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Which principle guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?
Which principle guideline requires a company's balance sheet to report its land at the amount the company paid to acquire?
Which principle guideline allows a company to ignore the change in the purchasing power of the rupee over time?
What principle is it is the assumption that the company will continue indefinitely?

If you have any difficulty answering the questions, learn more about this topic by reading our mini-lectures covering introductory to Accounting Principles.

1.	The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?
Cost Economic Entity Monetary Unit

2.	Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount?
Cost Economic Entity Monetary Unit

4.	Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?
Conservatism Economic Entity Full Disclosure

6.	Which principle/guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?
Economic Entity Going Concern Time Period

7.	A very large corporation's financial statements have the dollar amounts rounded to the nearest $1,000. Which accounting principle/guideline justifies not reporting the amounts to the penny?
Full Disclosure Materiality Monetary Unit

8.	Accountants might recognize losses but not gains in certain situations. For example, the company might write-down the cost of inventory, but will not write-up the cost of inventory. Which principle/guideline is associated with this action?
Conservatism Materiality Monetary Unit

9.	Which principle/guideline directs a company to show all the expenses related to its revenues of a specified period even if the expenses were not paid in that period?
Cost Matching Monetary Unit

10.	When the accountant has to choose between two acceptable alternatives, the accountant should select the alternative that will report less profit, less asset amount, or a greater liability amount. This is based upon which principle/guideline?
Conservatism Cost Materiality

11.	Public utilities' balance sheets list the plant assets before the current assets. This is acceptable under which accounting principle/guideline?
Conservatism Cost Industry Practices

12.	A large company purchases a $250 digital camera and expenses it immediately instead of recording it as an asset and depreciating it over its useful life. This practice may be acceptable because of which principle/guideline?
Cost Matching Materiality

13.	A corporation pays its annual property tax bill of approximately $12,000 in one payment each December 28. During the year, the corporation's monthly income statements report Property Tax Expense of $1,000. This is an example of which accounting principle/guideline?
Conservatism Matching Monetary Unit

14.	A company sold merchandise of $8,000 to a customer in December. The company's sales terms require the customer to pay the company in 30 days. The company's income statement reported the sale in December. This is proper under which accounting principle/guideline?
Full Disclosure Monetary Unit Revenue Recognition

16.	The creative chief executive of a corporation who is personally responsible for numerous inventions and innovations is not reported as an asset on the corporation's balance sheet. The accounting principle/guideline that prevents the corporation for reporting this person as an asset is
Conservatism Cost Going Concern

17.	An asset with a cost of $120,000 is depreciated over its useful life of 10 years rather than expensing the entire amount when it is purchased. This complies with which principle/guideline?
Cost Full Disclosure Matching

18.	Near the end of the current year, a company required a customer to pay $200,000 as a deposit for work that is to begin in the following year. At the end of the current year the company reported the $200,000 as a liability on its balance sheet. Which accounting principle/guideline prevented the company from reporting the $200,000 on its income statement for the current year?
Going Concern Materiality Revenue Recognition

19.	A retailer wishes to report its merchandise inventory on its balance sheet at its retail value. This would violate which accounting principle/guideline?
Cost Full Disclosure Monetary Unit

20.	A company borrowed $100,000 in December and will make its only payment for interest when the note comes due six months later. The total interest for the six months will be $3,600. On the December income statement the accountant reported Interest Expense of $600. This action was the result of which accounting principle/guideline?
Cost Matching Revenue Recognition

If you have any difficulty answering the questions, learn more about this topic by reading our mini-lectures covering introductory to Accounting Principles.

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Which principle guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements? The full disclosure principle requires businesses to disclose information that is relevant to the decisions of investors and creditors.

Which principle guideline requires a company's balance sheet to report its land at the amount the company paid to acquire?

Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount? The cost principle requires the accountant to show assets at cost and expenses at cost rather than at higher amounts.

Which principle guideline allows a company to ignore the change in the purchasing power of the rupee over time?

Hence, it is the money measurement principle that allows a company to ignore the changes in the purchasing power of dollar overtime. Hope, this will help you.

What principle is it is the assumption that the company will continue indefinitely?

The going concern principle, also known as continuing concern concept or continuity assumption, means that a business entity will continue to operate indefinitely, or at least for another twelve months.

Which principle guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

Which principle guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

Which principle guideline requires a company's balance sheet to report its land at the amount the company paid to acquire?

Which principle guideline allows a company to ignore the change in the purchasing power of the rupee over time?

What principle is it is the assumption that the company will continue indefinitely?

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