Chapter 1, Problem 6QS

Summary Introduction

 

Concept introduction:

Accounting is an art of collecting, recording, summarizing and presenting the financial information in a meaningful output. The person who does the accounting is called “Accountant”. The accountant follows some principles to do the accounting; the principles are called ‘Accounting Principles”. Accounting assumptions are fundamental base of for applying accounting principles. Accounting principles are rules and guidance to do accounting for different business situations and transactions.

To identify: the type of accounting principle or assumption for each of the given case.