From the following clues relating to topic matters covered in ‘Accounting assumptions: conventions and doctrines’, complete the crossword in figure 1.5.

Across 1 This doctrine depends on the size and importance of the item being considered.

3 There should be full . . . . . . . . . . so the owner understands the financial position.

4 The assumption that a business will continue to operate in the future is the . . . . . . . . . . of activity convention.

6 To record a non-current asset such as land at its cost rather than what it is now worth is applying the . . . . . . . . . . . . . . . . . . . . convention (2 words).

9 Accounting principles should be applied to the accounts . . . . . . . . . .

11 To understate profit, rather than overstate it, is the doctrine of . . . . . . . . . .

12 Entries recorded in the accounts are expressed in . . . . . . . . . . dollars.

15 The business life should be broken into periods of no more than . . . . . . . . . . . . . . . . . . . . (2 words).

16 Non-current assets are recorded in the accounts at their historical . . . . . . . . . .

Down 2 The life of the business is usually expected to go on . . . . . . . . . .

5 An assumption that the life of a business continues well into the future is the . . . . . . . . . . . . . . . . . . . .

convention (2 words).

7 This accounting convention separates the business from the owner.

8 Unless a dollar value can be given to a transaction then it cannot be entered into the accounts. This is an expression of the . . . . . . . . . . convention.

10 To enable an assessment of the results of buying and selling to be compared with the past and with present expectations, the accounting . . . . . . . . . . convention breaks the life of the business into equal time lengths.

13 If they affect the business or its reports then they are to be followed.

14 Accounting is used by . . . . . . . . . . businesses.

Transcribed Image Text:

10 15 6 8 12 5 6 11 16 3 13 1 4 14 7 2