Complete the following worksheet
(i) If a firm believes that some of its debtors may default, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___ concept.
(iii) Everything a firm owns, it also owns out to somebody. This coincidence is explained by the ___ concept.
(iv) The ___ concept states that if the straight-line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of ___
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to ___
(vii) The management of a firm is remarkably incompetent, but the firm's accountants cannot take this into account while preparing the book of accounts because of ___ concept.
Complete the following worksheet
(i) If a firm believes that some of its debtors may default, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the
(iii) Everything a firm owns, it also owns out to somebody. This coincidence is explained by the
(iv) The
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to
(vii) The management of a firm is remarkably incompetent, but the firm's accountants cannot take this into account while preparing the book of accounts because of
(i) Conservatism
(ii) Business entity
(iii) Dual aspect
(iv) Consistency
(v) Conservation concept
(vi) Revenue recognition
(vii) Money measurement
(i) Conservatism
(ii) Business entity
(iii) Dual aspect
(iv) Consistency
(v) Conservation concept
(vi) Revenue recognition
(vii) Money measurement
