Relacionar Columnas DiBIT_U6_ W14_Activity 1Versión en línea DiBIT_U6_ W14_Activity 1 por Educaplay 2 1 Accounting entity concept 2 Prudence concept 3 Money measurement concept 4 Going concern concept 5 Periodic concept 6 Revenue recognition concept 7 Accrual concept 8 Matching concept Consider the business enterprise and owners are two separate independent entities for accounting purpose Revenue should not be overstated and expenses should not be understated Financial Statements of a business is prepared based on the assumption that the business would continue its operations for a foreseeable future Income should not be recognized except when it is realized Only business transactions and events that can be measured in terms of money are recognized and recorded Total expenses incurred during the period should be matched against the total revenue recognized in that period Divide the life time of the business into periods such as monthly, quarterly, annually and prepare the financial statement for each period Relevant income and expenditure for the period should be recognized irrespective of their receipts and payments in cash
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