Business Principles and COncepts

Question 1

Accounting entity concept

Answer 1

Seperates the owner form the business for accountinf purposes

Question 2

Accounting period concept

Answer 2

Assumes that the life of a business is divided into arbitrary time periods. This could be a month , six months or 12 months

Question 3

Going concept principle

Answer 3

Assumes business is going to continue its operations indefinity and is not likely to be liquidated in the foreseeable future

Question 4

Monetayr principle

Answer 4

all transactions are recorded in dollars and cents