ACCT 1208 Lecture Notes - Lecture 1: Nancy Kerr, Historical Cost, Sole Proprietorship
Document Summary
Presented below are descriptions of several different business organizations. Jerry forrentes and susan montgomery own financial services, a financial and personal services provider. Neither forrentes nor montgomery has personal responsibility for the debts of financial services: nancy kerr and frank levens own runners, a courier service. Business entity principle - requires every business to be accounted for separately from its owner or owners. Historical cost accounting standard - requires financial statement information to be based on costs incurred in transactions. Going concern assumption - requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold. Revenue recognition principle - requires revenue to be recorded only when the earnings process is complete. On november 1, 2020, jean higgins started a wedding planning company, extraordinary studios. November 30, 2020, the company"s records showed the following items. Use the above information to prepare a november income statement for the business.
