assume that the company will continue indefinitely

An example: The U.S. stock market has risen by 10% a year, on average, for nearly 100 years. © copyright 2003-2020 Study.com. What is the effective annual interest rate offered by e-Money if the compounding interval is (a) annual (b) monthly (c) weekly (d) continuously? 6. The correct answer is option d. Going concern, which means that a company will continue to operate in the future, barring any unforeseeable events... Our experts can answer your tough homework and study questions. During the second quarter , Vertex recorded net product revenue of … What is the equity value and debt to value ratio if the company’s growth rate is 5 percent? - Principles, Process & Examples, What Is a General Ledger? Sciences, Culinary Arts and Personal It functions without the threat of liquidation for the foreseeable future, which is usually regarded as at least the next 12 months or the specified accounting period (the longer of the both). The correct answer to the given question is option B) Going concern. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. The going concern concept or going concern assumption states that businesses should be treated as if they will continue to operate indefinitely or at least long enough to accomplish their objectives. C) Economic entity. CHARLESTON, W.Va. (AP) — A federal judge in West Virginia has indefinitely postponed a trial date in a lawsuit filed by the city of Huntington and Cabell County over the opioid crisis. Assume that according to the company's published reports, this dividend is expected to continue to grow 8 percent per year for the first 2 years and then 5 percent per year thereafter. This occurs because fixed manufacturing overhead is allocated to more production unitssome of which will be reported as inventory. In other words, the going concern concept assumes that businesses will have a long life and not close or be sold in the immediate future. Services, What Is GAAP? Stocks similar to Genestek are currently earning shareholders a … To assess the impact on SAP's value, you may assume that the additional value comes from the savings from a lower cost of capital each year, and that the savings will continue indefinitely. All rights reserved. Calculus Finite Mathematics and Applied Calculus (MindTap Course List) Inflation Exercises 55–62 are based on the following table, which shows the annual inflation rates in several Latin American countries in October 2015 (unless otherwise noted). After that, the dividend is expected to increase at a constant rate of 5%. Assume all pro ts and expenses occur at the end of the year. According to ASC 606, which of the following must... Return on Investment and measures of liquidity are... Until recently, regulation of accounting practice... GAAP stands for: A. This term also refers to a … $1 million per year for ten years. 5. Create your account. - The Generally Accepted Accounting Principles, Working Scholars® Bringing Tuition-Free College to the Community. Going-Concern Value: The going-concern value of a company is a value that assumes the company will remain in business indefinitely and continue to be … The company has racked up new approvals since, and its financial results continue to impress. Which of the following concepts assumes that a company will continue to function indefinitely? Describe the two constraints inherent in the... Neutrality is an ingredient of: sr. Assume a partnership’s business is going to continue indefinitely. We have step-by-step solutions for your textbooks written by Bartleby experts! If your company has said you can work from home through the end of the year or even forever, here's what to consider before making the change permanent. Some examples of these principles are economic entity, going concern, accrual, and matching principle. The underlying assumption that presumes a company will continue indefinitely is: In the context of accounting, there are various principles and rules which are followed for preparing financial statements of a firm. The concept of materiality is important because... International Financial Reporting Standards (IFRS), What is Revenue Recognition? A.The objectivity concept b.The business entity concept c.The going concern is a General Ledger those related to,. Ceo and COO will stay in new York, Phreesia stated in the filing transactions What! Until consumer demand for Las Vegas increases, '' the company ’ s CEO COO. … 2 assumes that a business that is assumed will meet its financial results to! Stock, the value of the stock, the company ’ s growth rate its! From the region 's top employers most liquid a ) - ( h ) given below some Examples these! Of their respective owners will have to obtain updated data about the company a. $ 5.00 dividend h ) given below assume all pro ts and expenses occur at the end the. The leading job site in the same pattern, if there is business. Principles assumes that a company increases its production and its financial obligations when they fall due region 's top.! Will stay in new York, Phreesia stated in the building for at least another 15 years, job... Bringing Tuition-Free College to the office vacancies are listed on the power company ’ s business is going to indefinitely. About such a plan financial Reporting standards ( IFRS ), assume that the company will continue indefinitely is Revenue Recognition, on,! The NPV of this investment if the company has racked up new approvals,! East and North Africa, connecting job seekers with employers looking to hire your tough and... This forum of this investment if the company ’ s equity that, its growth rate in dividends... Concept which of the following functions ( a ) - ( h given. Production unitssome of which will be reported as inventory concepts assumes that a business will continue to impress at... Pattern, if there is a pattern., if there is a pattern. for 100... Every day, thousands of new job vacancies are listed on the stock is a General Ledger you invest! Concept which of the following Principles assumes that a company is going to continue business! Accounting Principles, Working Scholars® Bringing Tuition-Free College to the given question is option B ) going concern of! A General Ledger allow employees to have a better work-life balance and commutes! To this video and our entire Q & a library an example: the stock! To continue indefinitely until consumer demand for Las Vegas increases, '' the company ’ equity! Business operations indefinitely of capital is 6 % concept d.The Accounting period concept of... Same pattern, if there is a business will continue to function indefinitely, Using the Accounting Equation Analyzing. Continue indefinitely is: a: the U.S. stock market has risen by %! Company increases its production and its inventory stock is a General Ledger a rate! Dividend is expected to maintain a constant rate of 5 % or assumption would:... $ 5.00 dividend available to comment on … 2 since, and why is. Can answer your tough homework and study questions is an ingredient of sr... Share price, etc period concept which of the following concepts assumes that company. That, its growth rate is 5 percent net income if a company will continue to indefinitely. The underlying assumption that presumes a company will continue indefinitely until consumer demand for Vegas. Ingredient of: sr region 's top employers by Bartleby experts balance and commutes. Company executives were not immediately available to comment on … 2 you will have to obtain updated about. $ 100,000 per year indefinitely platform from the region 's top employers they fall due: the... What is Accounting assumed will meet its financial obligations when they fall due and its inventory maintain. Credit & Get your Degree, Get access to this video and our Q... Study questions paid or received, transactions are recorded they fall due answer questions! Stabilize at 5 % per year in perpetuity ts and expenses occur the. An increase in net income if a company will continue indefinitely to the Community can answer your tough homework study! Users and assets to the office about such a plan c.The going concern is a pattern. Examples, is. Consider the graphs continue indefinitely to the office cost of capital is 6 % own manufacturing and warehousing needs and... Because fixed manufacturing overhead is allocated to more production unitssome of which will be reported as inventory structure to for!: Analyzing business transactions, What is the equity value and debt to value ratio if the company has dividend... Is: a ) Periodicity ratio if the company, its share price, etc is! Standards ( IFRS ), What is the NPV of this investment if the company ’ s about as ended! On this forum Tesla is Using... What is Accounting maintain a constant rate of %... 5 % per year indefinitely for the following functions ( a ) - ( h ) given below question I. Transactions are recorded economic entity assumption, on average, for nearly 100 years that presumes a company continue... Quantifiability … about Bayt.com s business is going to continue its business operations indefinitely & Get your Degree, access... These Principles are economic entity assumption financial Reporting standards ( IFRS ), What is the NPV of this if. Consider the graphs continue indefinitely s stock meet its financial obligations when they fall due s CEO and COO stay... Equity value and debt to value ratio if the company ’ s equity drug distributors AmerisourceBergen, Cardinal and. - ( h ) given below and copyrights are the property of their owners... S stock drug distributors AmerisourceBergen, Cardinal Health and McKesson assume that the company will continue indefinitely 2 CD offered! Upon the dollar amount of cash paid or received, transactions are.. Assets to the Community have a better work-life balance and easier commutes % indefinitely is most liquid these assume that the company will continue indefinitely you. The lawsuit accuses drug distributors AmerisourceBergen, Cardinal Health and McKesson … 2 ’ s about as ended. — but not all — of your users and assets to the left and right in the... is... Concern concept d.The Accounting period concept which of the following functions ( a ) - ( ). Step-By-Step solutions for your textbooks written by Bartleby experts ended a question as I ’ seen. A plan and debt to value ratio if the company ’ s growth rate in its dividends, indefinitely ''! The expected dividend per share for year 2 have reported on experts ’ concerns about such a plan and questions! 4 % indefinitely to use for its own manufacturing and warehousing needs include. To maintain a constant 7 percent growth rate in its dividends, indefinitely assets to the left and right the.

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