F1 - M1 - Standards and Conceptual Framework Flashcards
1
Q
Entity Assumption
A
Economic activity can be accounted for when considering an identifiable set of activities (i.e., a separate corporation or division)
2
Q
Which fundamental assumption applies?
A company presents consolidated financial statements because it has 60% ownership in another company.
A
Entity Assumption
3
Q
Going Concern Assumption
A
The entity will continue to operate in the foreseeable future
