Liquidating a close corporation

According to the cost principle, it is preferable for managers to report an estimate of an asset’s value.

The monetary unit assumption means that all international transactions must be expressed in dollars.

The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.

A partnership is a business owned by two or more people.

Unlimited liability is an advantage of a sole proprietorship.

The International Accounting Standards Board (IASB) is the government group that establishes reporting requirements for companies that issue stock to the public.

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.

As a general rule, revenues should not be recognized in the accounting records until it is received in cash.

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