Question

(a)Belief that a company will remain in business for the foreseeable future. (Note: Do not use the historical cost principle.)

(b) select the accounting assumption or principle Indicates that personal and business recordkeeping should be separately maintained.
(c) select the accounting assumption or principle Only those things that can be expressed in money are included in the accounting records.
(d) select the accounting assumption or principle Separates financial information into time periods for reporting purposes.
(e) select the accounting assumption or principle Measurement basis used when a reliable estimate of fair value is not available.
(f) select the accounting assumption or principle Dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

Answer 1

Book keeping ideas principles of bookkeeping that ought to be followed in planning everything being equal and budget summaries. The four major ideas are;

• Accruals idea: income and costs are recorded when they happen and not when the money is gotten or paid out.

• Consistency idea: when a bookkeeping strategy has been picked, that technique ought to be utilized except if there is a sound motivation to do something else.

• Going concern: the business element for which records are being readied is in great condition and will keep on being good to go within a reasonable time-frame.

• Prudence idea (additionally protection idea): income and benefits are incorporated into the asset report just when they are acknowledged (or there is sensible sureness of acknowledging them) however liabilities are incorporated when there is sensible 'plausibility' of bringing about them.