Identify which basic assumption of accounting is best described in each item below.?

I'm not sure would like to hear someone else's opinion (I'm thinking D)

Identify which basic assumption of accounting is best described in each item below.

1. The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.

2. Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effects of inflation.

3. Walgreen Co. reports current and noncurrent classifications in its balance sheet.

4. The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.

1 Answer

Relevance
  • Sandy
    Lv 7
    1 decade ago
    Favorite Answer

    1. The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports

    Time Period Assumption

    2. Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effects of inflation

    Cost Principle

    3. Walgreen Co. reports current and noncurrent classifications in its balance sheet

    Full Disclosure Principle

    4. The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes

    Economic Entity Assumption

Still have questions? Get your answers by asking now.