12 Accounting Theory Flashcards
1
Q
Explain Accounting Entity
A
Activities of business are separate from the actions of the owner. All transactions are to be recorded from point of view of the business
2
Q
Explain Accounting Period
A
The life of a business is divided into regular time intervals.
3
Q
Explain monetary theory
A
Only business transactions that can be recorded in monetary terms are recorded.
4
Q
Explain objectivity theory
A
Accounting information provided must be supported by reliable and verifiable evidence.
