(i) An entity is said to be a (ii) The when there is no evidence to believe that it will or will have to close its business in the foreseeable future. allows an entity to ignore changes in the purchasing power of the shilling over time. (iii) A large entity purchases a calculator for Ksh 1,500 and expenses it immediately instead of recording it as an asset and depreciating it over its useful life. This practice may be acceptable because of the (iv) According to the (v) The of accounting, expenses must be recognized when they are incurred and not when cash payment for them is made. is associated with the assumption that the accounting entity of concern will continue long enough to carry out its objectives and commitments.