Please solve 16,17,18 Question 16 A basic assumption of accounting that requires
ID: 2510724 • Letter: P
Question
Please solve 16,17,18 Question 16 A basic assumption of accounting that requires activities of an entity be kept separat activities of its owner is referred to as the: Choose one answer. a. Stand alone concept b. Economic entity assumption c. Monetary unit assumption d.Going concern assumption e. Separate but distinct concept Question 17 The common characteristic possessed by all assets is: Choose one answer. a. Must have a Long life b. Must have Great monetary value c. Must be Tangible in nature d. Must generate Future economic benefits e. All of the above Question 184 Owner's equity can be described as: Choose one answer. a. Creditors' claims on total assets of a firm b. Owners' claim on total assets of a firm c. Benefactors' claims on total assets of a firm
Explanation / Answer
Q16. Answer is b. Economic Entity Assumption. Explanation: Economic Entity assumption or Business entity assumption states that the owner of the business and business both should be treated as diffferent person. Q17. Answer is d. Must generate Future Economic Benefits. Explanation: The basis charateristics of Assets is tat it must possess the capacity of generating future benefits. Q18. Answer is b. Owners' claim on total assets of the firm.