Question

Match the items in column-1 with the items in column-2 :

Answer 1

A. Materiality concept: According to the convention of materiality, all relevant items, the knowledge of which might influence the decision of the users of the financial statements, sholud be disclosed in the financial statement.

B. Going concern concept: It is known as assumption of continuity. It is assumed that the enterprise has neither the intention nor the necessity to wind up the business in the foreseeable future.

C. Historical cost concept: Historical cost is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost.

D. Consistency concept: According to this principle, the accounting policies adopted by the enterprise should be followed consistently from one period to another.