ACC-1A Lecture 4: Acc_1-A_day_4
Document Summary
Going-concern assumption acct info reflects a presumption that the business will continue to operate instead of being closed or sold. Monetary unit assumption we can express transactions and events in monetary units. Time period assumption presumes that the life of a company is divided into time periods, such as months years. Business entity assumption a business is accounted for separately from other business entities, including its owner. A business entity can take one of 3 forms. Partnership business owned by 2 or more people. Has agreement about how income and losses shared. Llc limited liability company offers the limited liability of a corporation and the tax treatment of a partnership. Corporation business legally separate from its owners, meaning it is responsible for its own acts and debts. Separate legal status so corporation can conduct business with rights, duties, and responsibilities of a person. Shareholders (owners) are not responsible for acts and debts.
