The following accounting principles and assumptions are included in the conceptual framework of accounting:
For each situation in A through C below, identify which assumption or principle applies by selecting from the list pro why that assumption or principle applies.
A Global Corp. has divisions in several countries around the world. Each of these countries has a currency different from the U.S.dollar. Global Corp. is a U.S. company and must include the financial data of its worldwide divisions in its financial stat
B Steve and Mike operate a security business as a partnership. They are considering the advantages of changing over to the corporate form of business.
C Island Pasta is a locally owned and operated fast-food business. The owners have decided to expand into nearby cities. Expansion will require more capital, but management does not expect it will stay in business for more than a year or so regardless if it expands or not.

Question

The following accounting principles and assumptions are included in the conceptual framework of accounting:
  For each situation in A through C below, identify which assumption or principle applies by selecting from the list pro why that assumption or principle applies.
A Global Corp. has divisions in several countries around the world. Each of these countries has a currency different from the U.S.dollar. Global Corp. is a U.S. company and must include the financial data of its worldwide divisions in its financial stat
B Steve and Mike operate a security business as a partnership. They are considering the advantages of changing over to the corporate form of business.
C Island Pasta is a locally owned and operated fast-food business. The owners have decided to expand into nearby cities. Expansion will require more capital, but management does not expect it will stay in business for more than a year or so regardless if it expands or not.

Quizplus · Accepted Answer

The Answer of The following accounting principles and assumptions are included in the conceptual framework of accounting:
  For each situation in A through C below, identify which assumption or principle applies by selecting from the list pro why that assumption or principle applies.
A Global Corp. has divisions in several countries around the world. Each of these countries has a currency different from the U.S.dollar. Global Corp. is a U.S. company and must include the financial data of its worldwide divisions in its financial stat
B Steve and Mike operate a security business as a partnership. They are considering the advantages of changing over to the corporate form of business.
C Island Pasta is a locally owned and operated fast-food business. The owners have decided to expand into nearby cities. Expansion will require more capital, but management does not expect it will stay in business for more than a year or so regardless if it expands or not.

The Following Accounting Principles and Assumptions Are Included in the Conceptual