This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: PPE l) Long-term debt LTL m) Materials and suppliesCA n) Office equipment and furniture PPE o) Prepaid Expenses CA EX 2-11 a) Is the rationale for why plant assets are not reporter at liquidation value: Going Concern Assumption (2) b) Indicates that personal and business record-keeping should be separately maintained: Economic Entity Assumption (6) c) Assumes that the dollar is the “measuring stick” used to report on financial performance: Monetary Unit Assumption (3) d) Separates financial information into time periods for reporting purpose: Time period Assumption (4) e) Indicates that companies should not record in the accounts market value changes: Cost Principle (5) f) Dictates that companies should disclose all circumstances and events that make a difference to financial statement users: Full Disclosure Principle (1) P 2-3A See attached sheet...
View Full Document
This note was uploaded on 11/21/2011 for the course BUS 214 taught by Professor Waker during the Winter '08 term at Cal Poly.
- Winter '08