Matching concept Prudence Continuity Entity concept Accrual accounting Cash accounting Accounting period Disclosure Realization A. Transactions accounted when they occur. B. Owners are kept separate from the business. C. Revenues and expenses are matched to generate profit/loss. D. The financial year is divided in different periods E. Stakeholders demand access to all relevant information. F. Free from error and bias. G. Accountants should choose the understate profit H. Assets to be recorded at its original cost. Businesses are assumed to be going concern
Matching concept Prudence Continuity Entity concept Accrual accounting Cash accounting Accounting period Disclosure Realization A. Transactions accounted when they occur. B. Owners are kept separate from the business. C. Revenues and expenses are matched to generate profit/loss. D. The financial year is divided in different periods E. Stakeholders demand access to all relevant information. F. Free from error and bias. G. Accountants should choose the understate profit H. Assets to be recorded at its original cost. Businesses are assumed to be going concern
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:uestion 2
Matching:
Match the accounting concepts with its descriptions.
Matching concept
Prudence
Continuity
Entity concept
Accrual accounting
Cash accounting
Accounting period
Disclosure
Realization
Objectivity
Historical cost
Monetary concept
A. Transactions accounted when they occur.
B. Owners are kept separate from the business.
C. Revenues and expenses are matched to generate
profit/loss.
D. The financial year is divided in different periods.
E. Stakeholders demand access to all relevant
information.
F. Free from error and bias.
G. Accountants should choose the understate profits.
H. Assets to be recorded at its original cost.
1. Businesses are assumed to be a going concern.
J. Transactions accounted for when payments made or
received.
K. All transactions to be recorded in monetary value.
L. Tells when a transaction is certain to realize profits.
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