Accounting Principles Questions And Answers
Verified 100% Correct
The monetary unit principle - ANSWER states that you only record
business transactions that can be expressed in terms of a currency. Thus,
a company cannot record such non-quantifiable items as employee skil l
levels, the quality of customer service, or the ingenuity of the
engineering staff.
The conservatism principle - ANSWER is the general concept of
recognizing expenses and liabilities as soon as possible when there is
uncertainty about the outcome, but to only recognize revenues and assets
when they are assured of being received.
The economic entity principle - ANSWER states that the recorded
activities of a business entity will be kept separate from the recorded
activities of its owner(s) and any other business entities.
The going concern principle - ANSWER is the assumption that an
entity will remain in business for the foreseeable future. Conversely, this
means the entity will not be forced to halt operations and liquidate its
assets in the near term at what may be very low fire-sale prices.
Verified 100% Correct
The monetary unit principle - ANSWER states that you only record
business transactions that can be expressed in terms of a currency. Thus,
a company cannot record such non-quantifiable items as employee skil l
levels, the quality of customer service, or the ingenuity of the
engineering staff.
The conservatism principle - ANSWER is the general concept of
recognizing expenses and liabilities as soon as possible when there is
uncertainty about the outcome, but to only recognize revenues and assets
when they are assured of being received.
The economic entity principle - ANSWER states that the recorded
activities of a business entity will be kept separate from the recorded
activities of its owner(s) and any other business entities.
The going concern principle - ANSWER is the assumption that an
entity will remain in business for the foreseeable future. Conversely, this
means the entity will not be forced to halt operations and liquidate its
assets in the near term at what may be very low fire-sale prices.
