Fallon Osmond is chairperson of the board of Simple Treats, Inc. Suppose Osmond has just founded Simple Treats, and assume that she considers her home and other personal assets as part of Simple Treats. Answer these questions about the evaluation of Simple Treats, Inc 1. Which accounting assumption governs this situation? assumption gve Osmond and others a realistic view of Simple Treats, Inc? Explain in detail 2. How can the proper application of this 1. Which accounting assumption governs this situation? The entity assumption applies The entity assumption The going-concern assumption The stable-monetary-unit assumption

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Business

Alaina

2 February, 22:50

Fallon Osmond is chairperson of the board of Simple Treats, Inc. Suppose Osmond has just founded Simple Treats, and assume that she considers her home and other personal assets as part of Simple Treats. Answer these questions about the evaluation of Simple Treats, Inc 1. Which accounting assumption governs this situation? assumption gve Osmond and others a realistic view of Simple Treats, Inc? Explain in detail 2. How can the proper application of this 1. Which accounting assumption governs this situation? The entity assumption applies The entity assumption The going-concern assumption The stable-monetary-unit assumption

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Answers (1)

Know the Answer?

Miah Hurley · Answer 1

The correct answer will be "The entity assumption ". The further explanation is given below.

Explanation:

The entity hypothesis or assumptions that are also considered separate legal entity hypothesis claims that a corporation is regarded as something of an autonomous organization. Therefore a separate entity that has it's own finance importance and position that would be independent of the legislature as well as any company data is separated from its owner's accounts.

So that the above is the right answer.