Objective : Explain underlying accounting concepts, assumptions, and principles of accounting) Meagan Wallace is chairman of the board of New Age Foods, Inc. Suppose Ms. Wallace has just founded New Age Foods, and assume that she treats her home and other personal assets as part of New Age Foods. Answer these questions about the evaluation of New Age Foods, Inc.
1. Which accounting assumption governs this situation?
2. How can the proper application of this accounting assumption give Wallace and others a realistic view of New Age Foods, Inc.? Explain in detail.