Answer Happy

Question 32 (3 points) Identify the accounting assumption that best applies to each of the following situations. Note: The same assumption can be used multiple times. If Rainbow Colour Supplies Inc. had to liquidate its assets, their value would be $400,000 less than the carrying amounts of the assets. Which assumption provides guidance on whether this amount should be reported in the financial statements? 1. Historical-cost assumption 2. Going-concern assumption Inflation affects the amounts that Ricoh must pay for their printers. To show the effects of inflation, net income would drop by $3,000. Which assumption provides guidance on the reporting decisions in this situation? 3. Separate-entity assumption 4. Stable-monitary-unit assumption The vendor, Carla Parshini, organizes their business as a corporation. They wonder
compus courselink.uoguelph.ca - ACCT 1220 (0101) W... Top Hat ECON 1100 (01.02.03 W22-In Grades-HOBB V22 - April 23, 11:30 am Aaron Sutton: Attempt 1 Time Left:1:48:45 inc. nad to liquidate its assets, their value would be $400,000 less than the carrying amounts of the assets. Which assumption provides guidance on whether this amount should be reported in the financial statements? 1. Historical-cost assumption 2. Going-concern assumption Inflation affects the amounts that Ricoh must pay for their printers. To show the effects of inflation, net income would drop by $3,000. Which assumption provides guidance on the reporting decisions in this situation? 3. Separate-entity assumption 4. Stable-monitary-unit assumption The vendor, Carla Parshini, organizes their business as a corporation. They wonder if the $5,200 on their personal bank account can be presented in the balance sheet of the company. Which assumption provides guidance here?