Guess the Concepts!

The accounts should be recorded initially at cost is what principle?

Financial statements must be presented with supporting evidence.

The cost should be matched with the revenue generated.

In case of assets that are immaterial to make a difference in the financial statements, the company should instead record it as an expense.

The amounts are stated into a single monetary unit. What principle is this?

A business is expected to continue indefinitely in this principle.

This is also known as prudence. In case of doubt, assets and income should not be overstated while liabilities and expenses should not be unde

It is a business enterprise is separate and distinct from its owner or investor.

Revenue should be recognized when earned regardless of collection and expenses should be recognized when incurred regardless of payment.

Financial statements are to be divided into specific time intervals in this principle.

In this principle, all relevant and material information should be reported.