Question

2.A firm is expected not to
curtail its present scale and
continue at the operate at least
at the existing level under,
which of the following:
1.accounting entity
2.going concern entity
3.money measuring entity
4.accounting period​

Answer 1

Answer:

3 is your answer .............

Answer 2

The correct answer is: (option 2) Going Concern Entity.

A firm is expected not to curtail its present scale and continue at the operate at least at the existing level under, going concern entity.

• Accounting entity: A distinct economic unit known as an accounting entity separates the accounting of specific transactions from those of other subdivisions or accounting entities. A corporation, a single proprietorship, or subsidiaries within a corporation are all examples of accounting entities.

• Going concern entity: The going concern principle is the belief that a company will continue to operate for the foreseeable future. On the other hand, this implies that the corporation won't have to immediately stop operations and sell off its assets at what might be extremely low fire sale rates.

• Money measuring entity: According to the money measurement concept, an accounting transaction should only be recorded if it can be described in terms of money. This indicates that quantitative information, rather than qualitative information, is the primary emphasis of accounting activities.

• Accounting period: Any time frame used for financial reporting is referred to as an accounting period. The statements or reports for a certain accounting period include transactions that occurred within a specified calendar range. Typically, an accounting period lasts for 12 months.

Therefore, a firm is expected not to curtail its present scale and continue at the operate at least at the existing level under, going concern entity.

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