Accounting: Accounting is the technique of recording the financial events and transaction occur in a business while doing any business activity. Accounting is one of the major activity done in any organization, accounting is necessary to see the present as well as the future position of an organization. Accounting Principle: Accounting principle are the special guidelines that should be followed by the company for recording the financial transactions of the company. The accounting principle of one country is different from other. As they are based on the economic factor of the countries. Accounting Assumption: An accounting assumption is the statement that made by the experienced accountants. Although no evidence is available for these assumptions, but they are regularly followed in accounting. For example business entity assumption, going concern assumption and many more. Accounting Constraint: The accounting constraints are the limitation that seen by the accountant while providing accounting information. The accounting constraint allow certain changes from the accounting principles while reporting information of company. The four main accounting constraint are cost and benefit, materiality, industry practices, and conservatism. To identify: The each given terms come under (a) accounting principle or (b) accounting assumption or (c) accounting constraint.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 4QS

To determine

Accounting:

Accounting is the technique of recording the financial events and transaction occur in a business while doing any business activity. Accounting is one of the major activity done in any organization, accounting is necessary to see the present as well as the future position of an organization.

Accounting Principle: Accounting principle are the special guidelines that should be followed by the company for recording the financial transactions of the company. The accounting principle of one country is different from other. As they are based on the economic factor of the countries.

Accounting Assumption: An accounting assumption is the statement that made by the experienced accountants. Although no evidence is available for these assumptions, but they are regularly followed in accounting. For example business entity assumption, going concern assumption and many more.

Accounting Constraint: The accounting constraints are the limitation that seen by the accountant while providing accounting information. The accounting constraint allow certain changes from the accounting principles while reporting information of company. The four main accounting constraint are cost and benefit, materiality, industry practices, and conservatism.

To identify: The each given terms come under (a) accounting principle or (b) accounting assumption or (c) accounting constraint.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please provide the solution to this general accounting question with accurate accounting calculations.

I need the correct answer to this general accounting problem using the standard accounting approach.

You are employed by an external audit firm that is hired by JBltd, a privately owned incorporated business. Accounting records are maintained on a computer using proprietary software. You have worked on the audit for three years and this year you are in charge of the audit. Your assistant is a newly recruited business graduate who has done an accounting course but has no practical experience. Because of the small size of the company there is limited opportunity for segregation of duties. You decide, as in previous years, that the appropriate audit strategy is to obtain evidence primarily through the performance of substantive procedures. You also plan to perform the audit around the computer as the proprietary software is known to be reliable and details of all transactions and balances can be readily printed out. On arriving at the company's premises in December 2019 to perform the final audit on the 31 October 2019 financial statements, you obtain a copy of the year end bank…