Chapter 1 Flashcards
1
Q
Periodicity assumption
A
allows the life of a company to be divided into artificial time periods to provide timely information.
2
Q
Economic entity assumption
A
presumes that economic events can be identified specifically with an economic entity.
3
Q
Expense recognition
A
4
Q
Going concern assumption
A
in the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely.
5
Q
Rate of return f
A
Dividends + share price
———————————-
Initial investment
6
Q
Conceptual framework
A
deals with theoretical and conceptual issues and provides an underlying structure for current and future accounting and reporting standards.
