To earn these

revenuely and completely dischtnotes.policies and practices felsame accounting princor the period under connues during that perioderial and relevant factsthe period of time so th39bry base of AccountingComplete the following work sheet:(1) If a firm believes that some of its debtors may 'default', it should act on this bymaking sure that all possible losses are recorded in the books. This is an exampleof theconcept.(11) The fact that a business is separate and distinguishable from its owner is bestexemplified by theconcept.(iii) Everything a firm owns, it also owns out to somebody. This co-incidence isexplained by theconcept.(iv) Theconcept states that if straight line method of depreciation isused in one year, then it should also be used in the next year.(v) A firm may hold stock which is heavily in demand. Consequently, the marketvalue of this stock may be increased. Normal accounting procedure is to ignorethis because of the(vi) If a firm receives an order for goods, it would not be included in the sales figureowing to the(vii) The management of a firm is remarkably incompetent, but the firms accountantscan not take this into account while preparing book of accounts because ofconcept.ing AnswersThe accounting concepts and accounting standards are generally referred to as theessence of financial accounting'. Comment.Why is it important to adopt a consistent basis for the preparation of financialstatements? Explain.Discuss the concept-based on the premise do not anticipate profits but provide forall losses'.What is matching concept? Why should a business concern follow this concept?Discuss.en statements of unWhat is the money measurement concept? Which one factor can make it difficult tone uniform and conscompare the monetary values of one year with the monetary values of another year?e provisions of appProject Workuntry.ransactions should bell anticipated losses shpred.uld focus on materially prudent investor oreinancial statements.nsactions should berentants and others.rding business transaer double entry systerstem is known as incunting are cash bas.only when cash are resare recognises wher

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To earn these

revenuely and completely dischtnotes.policies and practices felsame accounting princor the period under connues during that perioderial and relevant factsthe period of time so th39bry base of AccountingComplete the following work sheet:(1) If a firm believes that some of its debtors may 'default', it should act on this bymaking sure that all possible losses are recorded in the books. This is an exampleof theconcept.(11) The fact that a business is separate and distinguishable from its owner is bestexemplified by theconcept.(iii) Everything a firm owns, it also owns out to somebody. This co-incidence isexplained by theconcept.(iv) Theconcept states that if straight line method of depreciation isused in one year, then it should also be used in the next year.(v) A firm may hold stock which is heavily in demand. Consequently, the marketvalue of this stock may be increased. Normal accounting procedure is to ignorethis because of the(vi) If a firm receives an order for goods, it would not be included in the sales figureowing to the(vii) The management of a firm is remarkably incompetent, but the firms accountantscan not take this into account while preparing book of accounts because ofconcept.ing AnswersThe accounting concepts and accounting standards are generally referred to as theessence of financial accounting'. Comment.Why is it important to adopt a consistent basis for the preparation of financialstatements? Explain.Discuss the concept-based on the premise do not anticipate profits but provide forall losses'.What is matching concept? Why should a business concern follow this concept?Discuss.en statements of unWhat is the money measurement concept? Which one factor can make it difficult tone uniform and conscompare the monetary values of one year with the monetary values of another year?e provisions of appProject Workuntry.ransactions should bell anticipated losses shpred.uld focus on materially prudent investor oreinancial statements.nsactions should berentants and others.rding business transaer double entry systerstem is known as incunting are cash bas.only when cash are resare recognises wher​

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1.	To earn these revenuely and completely dischtnotes.policies and practices felsame accounting princor the period under connues during that perioderial and relevant factsthe period of time so th39bry base of AccountingComplete the following work sheet:(1) If a firm believes that some of its debtors may 'default', it should act on this bymaking sure that all possible losses are recorded in the books. This is an exampleof theconcept.(11) The fact that a business is separate and distinguishable from its owner is bestexemplified by theconcept.(iii) Everything a firm owns, it also owns out to somebody. This co-incidence isexplained by theconcept.(iv) Theconcept states that if straight line method of depreciation isused in one year, then it should also be used in the next year.(v) A firm may hold stock which is heavily in demand. Consequently, the marketvalue of this stock may be increased. Normal accounting procedure is to ignorethis because of the(vi) If a firm receives an order for goods, it would not be included in the sales figureowing to the(vii) The management of a firm is remarkably incompetent, but the firms accountantscan not take this into account while preparing book of accounts because ofconcept.ing AnswersThe accounting concepts and accounting standards are generally referred to as theessence of financial accounting'. Comment.Why is it important to adopt a consistent basis for the preparation of financialstatements? Explain.Discuss the concept-based on the premise do not anticipate profits but provide forall losses'.What is matching concept? Why should a business concern follow this concept?Discuss.en statements of unWhat is the money measurement concept? Which one factor can make it difficult tone uniform and conscompare the monetary values of one year with the monetary values of another year?e provisions of appProject Workuntry.ransactions should bell anticipated losses shpred.uld focus on materially prudent investor oreinancial statements.nsactions should berentants and others.rding business transaer double entry systerstem is known as incunting are cash bas.only when cash are resare recognises wher
Answer» tion: If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the conservatismconcept.(ii)The fact that a business is separate and distinguishable from its owner is best exemplified by the business entity concept.(iii)Everything a firm owns, it also owns out to somebody. This co-incidence is explained by thedual ASPECT concept.(iv)The consistency concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.(v)A firm may hold STOCK which is heavily in demand. Consequently, the market value of this stock may be INCREASED. Normal accounting procedure is to ignore this because of theconservatism.(vi)If a firm receives an order for goods, it would not be included in the sales figure owing to therevenue recognition.(VII)The management of a firm is remarkably incompetent, but the firm’s accountants cannot take this into ACCOUNT while preparing book of accounts because of money measurement concept.