The economic entity assumption requires that the activities
a. of different entities can be combined if all the entities are corporations.
b. must be reported to the Securities and Exchange Commission.
c. of a sole proprietorship cannot be distinguish
Principles of Financial Accounting, Professor John Savignano, CPA
Fordham University, Gabelli School of Business Administration
Dealy Hall 303
Lifetime sells softball equipment. On November 14, they shipped $3,000 worth of softball
uniforms to Palos Middle School, terms 2/10, n/30. On November 21, they received an order from Tinley
High School for $1,800 worth of custom printed bats to be pr
Gagner Clinic purchases land for $175,000 cash. The clinic assumes $1,500 in property
taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land
graded for $2,200. What amount does Gagner Clinic record as the cost for t
Evaluate past performance.
Predicting future performance.
Help assess the risk or uncertainty
The Accounting Information System
The Accounting Equation
Relationship among the assets, liabilities and stockholders
equity accounts of a business:
The equation must be in balance after every transaction. For
every Debit th
Essential characteristics of accounting are:
(1) the identification, measurement, and communication
of financial information about
Time Value of Money
A relationship between time and money.
A dollar received today is worth more th