Question 1 (30)

a. Cost principles

b. Going concern assumption

c. Stable-monetary-unit assumption

d. Economic entity assumption

e. Materiality concept

f. Revenue recognition concept

g. Conservative principle

h. Full disclosure principle

(Put a, b, c. in the blanks)

1. There must be complete and relevant reporting on financial statements

. 2. The president of a business should not loan his spouse the company's credit card for personal expenses.

3. It is assumed that an organization will remain in the business in the foreseeable future

4. Revenue for a retail shop is recorded at the point of sale in a supermarket.

5. Assets that have changes in value are not reported at their current worth In the accounting records