Concepts Flashcards
(5 cards)
1
Q
Going Concern
A
The financial reports are prepared on the assumption that the life of the business is expected to continue to operate into the foreseeable future.
2
Q
Accounting Entity
A
The financial affairs of the entity are kept separate and distinct from the financial affairs of the owner
3
Q
Accural Basis
A
Transactions are recognised when they occur and are recorded and reported in the financial reports of the period to which they relate
4
Q
Historical Cost
A
Transactions are recorded at the amount of cash paid or payable at the time of the transaction
5
Q
Period Reporting
A
The lifetime of the business is divided into nominated time periods of equal length, usually a year.
