page Flashcards
(4 cards)
1
Q
period assumption
A
financial activities are recorded and reported on for a particular period of time, in order to compare
2
Q
accrual basis assumption
A
revenues are recognised when earned and expenses are recognised when incurred to accurately calculate net profit.
3
Q
going concern assumption
A
financial reports are prepared under the assumption that the business will continue to operate in the future
4
Q
entity assumption
A
the financial records and activities of the business are kept completely seperate from the owner .
