Chapter 3 - Accounting Concepts

Question 1

• Business Entity

Answer 1

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Question 2

• Accruals

Answer 2

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Question 3

• Going Concern

Answer 3

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Question 4

• Materiality

Answer 4

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Question 5

Materiality and Aggregation Concept:

Answer 5

The materiality and aggregation concept says that an entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial.