Have an account?
Skip to Content
11 questions
Show Answers
See Preview
- Multiple ChoicePlease save your changes before editing any questions.
Accounting Assumptions are
the generally accepted way of doing things as an accountant
the technical definitions, rules and procedures for reporting transactions worldwide
the suggested ways an accountant may do things
different in every country
- Multiple ChoicePlease save your changes before editing any questions.
How many Accounting Assumptions are there in the accounting system
3
2
4
1
- Multiple ChoicePlease save your changes before editing any questions.
Accounting Assumptions describe the generally agreed principles that underpin the preparation of financial reports
False
True
- Multiple ChoicePlease save your changes before editing any questions.
The assumption that states the records of assets, liabilities, and business activities of the entity are kept completely separate from the owner as well as from other entities is the
going concern assumption
accrual basis assumption
entity assumption
period assumption
- Multiple ChoicePlease save your changes before editing any questions.
The Accounting Entity Assumption is important as it helps to
record, report and value assets that have occurred and will have an effect in the future
work out whose financial information is being assessed
determine which transactions are included or excluded
define the period of time for which we are reporting
- Multiple ChoicePlease save your changes before editing any questions.
The Going Concern Assumption is important as it helps to
record, report and value assets that have occured and will have an effect in the future
work out whose financial information is being assessed
determine which transactions are included or excluded
define the period of time for which we are reporting
- Multiple ChoicePlease save your changes before editing any questions.
The Period Assumption is important as it helps to
record, report and value assets that have occured and will have an effect in the future
work out whose financial information is being assessed
determine which transactions are included or excluded
define the period of time for which we are reporting
- Multiple ChoicePlease save your changes before editing any questions.
The Accrual basis Assumption is important as it helps to
record, report and value assets that have occured and will have an effect in the future
work out whose financial information is being assessed
determine which transactions are included or excluded
define the period of time for which we are reporting
- Multiple ChoicePlease save your changes before editing any questions.
The Assumption that revenues are recognised when earned and expenses when incurred so profit is calculated as Revenue earnt less expenses incurred is the
Entity assumption
Period assumption
Accrual basis assumption
Going concern assumption
- Multiple ChoicePlease save your changes before editing any questions.
The Assumption that reports are prepared for a particular period of time, such as a month or a year in order to obtain comparability of results is the
Entity assumption
Period assumption
Accrual basis assumption
Going concern assumption
- Multiple ChoicePlease save your changes before editing any questions.
The Assumptions that the business will continue to operate in the future and its records are kept on that basis is the
Entity assumption
Period assumption
Accrual basis assumption
Going concern assumption