Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. this is accounting subject ( principle of auditing

this is accounting subject ( principle of auditing ) please show me the steps of the solutions. 1)...

70.2K

Verified Solution

Question

Accounting

this is accounting subject ( principle of auditing)

please show me the steps of the solutions.

1) conservation concept emphasizes that profit shouldnever be overstated or anticipated.

True or false and why?

2) evaluation of the closing inventory at its cost ormarket value whichever is lower is an application of the "costconcept".

True or false and why?

3) explain - briefly the following terms:

business entity - going concern - accruals - materiality- conservatism

Answer & Explanation Solved by verified expert
3.9 Ratings (713 Votes)
1 True Conservatism concept states that business entities must provide for all anticipated losses in the books of accounts but must not disclose any anticipated profits in the books This accounting concept is now known as prudence In recroding assets one should be conservative on the other hand while recording of liabilities one may not be conservative in approach    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

this is accounting subject ( principle of auditing)please show me the steps of the solutions.1) conservation concept emphasizes that profit shouldnever be overstated or anticipated.True or false and why?2) evaluation of the closing inventory at its cost ormarket value whichever is lower is an application of the "costconcept".True or false and why?3) explain - briefly the following terms:business entity - going concern - accruals - materiality- conservatism

Other questions asked by students

Q

Urinary System Review Questions 1: How do you predict whether this sample is hyper- osmotic, hypo-osmotic or...

Medical Sciences
Q

4 Select all true statements based on the diagram a Angle CBE is congruent to...

Geometry
Q

6 8 6 10 x 12 13 14 16 A TV executive is interested in...

Statistics
Q

Find a vector n normal to the plane with the equation y 3x3z 4 n...

Calculus
Q

Find the length of the following two dimensional curve I r t cost t sint...

Algebra
Q

Use the accompanying sinking fund formula to determine the payment needed to reach the accumulated...

Algebra
Q

You are the Executive Director of a large research institute that is evaluating whether to...

Accounting
Q

what types of conflicts of interest exist in the world of credit rating agencies? can...

Accounting
Q

The following information relates to Peter Company (in thousands): Additional investment by Mr. Peter $...

Accounting
Q

What would the standards look like for both DL and variable-MOH if management reduces expected...

Accounting
Q

Stock A has a beta of 0.54 and volatility of 0.77. Stock B has a...

Finance
Q

The income statement, also known as the profit and loss (P&L) statement, provides a snapshot...

Finance