(1) Periodicity: Although, the results of a business unit cannot be determined with precision until its final liquidation, the business community and users of financial statements require that the business be divided into accounting periods usually one year and that changes in position be measured over these periods.
(2) Materiality: The principle that financial statement should separately disclose items which are significant enough to affect evaluation or decisions.
(3) Matching Concept: The concept hold that for any accounting period, the earned revenue and all the incurred cost that generated that revenue must be matched and reported for the period.
(4) Going Concern Concept: The assumption is that the business unit will operate in perpetuity that is the business is not expected to be liquidated in the foreseeable future.
(5) Entity Concept: Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having proprietary or economic interest in it.
Click on the links below:
THE MAN OF CONFIDENCE:
https://objunityonlineclasses.blogspot.com/2022/10/the-man-of-confidence.html
DEPRECIATION:
https://objunityonlineclasses.blogspot.com/2022/10/solution-to-test-question-on.html
TRIAL BALANCE:
https://objunityonlineclasses.blogspot.com/2022/10/tutorial-questions-on-trial-balance.html
No comments:
Post a Comment