BUSINESS ACCOUNTING

State the assumptions or principles that best reflect the following description:

1. Every business is accounted separately from its business owner(s).

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2. A company will record its asset based on actual cost incurred.

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3. The business will continue to operate in the future and the financial statement reflects the assumption.

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4. All transactions recorded in the financial statement are recorded in Malaysian Ringgit.

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5. The recognition of revenues when earned and expenses incurred regardless of when cash is received or paid.

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Fill in the blanks with the accounting concept principles that best reflect the following descriptions: This activity is case-sensitive, hence please make sure that you type in the answer exactly as stated in the word list answer options.

1. For accounting purposes, the proprietor of an enterprise has always been considered to be separate and distinct from the business which he controls or owns. Answer: 2. A business will continue to operate in the foreseeable future. Answer: 3. Once an accounting method is chosen; it should be used both within one accounting period and from one accounting period to another. Answer: 4. A transaction is considered to be a material if it significantly affects the reported net income of the business. Answer: 5. The purchasing power of the unit of measurement used in accounting, the RM does not change. Answer: 6. The economic activities of a business can be divided into regular time periods. Answer: 7. The recognition of revenues when earned and expenses incurred regardless of when cash is received or paid. Answer: