State the name of the accounting principle, concept or convention with

1.	State the name of the accounting principle, concept or convention with which the following statements or situations are associated:1. In absence of any contrary information, life of the business is assumed to be indefinite or for a very long period and hence such life is divided into convenient accounting periods to ascertain performance and position of entity at the end of each such accounting period.2. Any item of income or expenditure which does not exceed one per cent of the revenue from operations of ₹ 1,00,000 whichever is higher is not required to be shown separately in statement of profit and loss of a company, unless specifically required otherwise.
Answer» 1. According to Accounting period concept, in absence of any contrary information, life of the business is assumed to be indefinite or for a very long period and hence such life is divided into convenient accounting periods to ascertain performance and position of entity at the end of each such accounting period. 2. According to Materiality concept, any item of income or expenditure which does not exceed 1 % of the revenue from operations or ₹ 1,00,000 whichever is higher is not required to be shown separately in statement of profit and loss of a company, unless specifically required otherwise.

State the name of the accounting principle, concept or convention with which the following statements or situations are associated:1. In absence of any contrary information, life of the business is assumed to be indefinite or for a very long period and hence such life is divided into convenient accounting periods to ascertain performance and position of entity at the end of each such accounting period.2. Any item of income or expenditure which does not exceed one per cent of the revenue from operations of ₹ 1,00,000 whichever is higher is not required to be shown separately in statement of profit and loss of a company, unless specifically required otherwise.

Answer»

1. According to Accounting period concept, in absence of any contrary information, life of the business is assumed to be indefinite or for a very long period and hence such life is divided into convenient accounting periods to ascertain performance and position of entity at the end of each such accounting period.

2. According to Materiality concept, any item of income or expenditure which does not exceed 1 % of the revenue from operations or ₹ 1,00,000 whichever is higher is not required to be shown separately in statement of profit and loss of a company, unless specifically required otherwise.

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