Identify the concepts and principles underlying accounting.

The statements below refer to the concepts and principles underlying the recording of accounting information. Identify if they are true or false.

(a) The accounting period concept states that the life of a business can be divided into various periods to more accurately reflect the profit and smooth out seasonal fluctuations in profit between different periods.

b) The cost principle states that all accounting transactions and events are recorded in the accounts at their cost.

(c) The going concern principle states that the business will remain in operation for the foreseeable future.