Q1) Given below are assumptions and principles.
1. Full disclosure principle.
2. Going concern assumption.
3. Monetary unit assumption.
4. Time period assumption.
5. Cost principle.
6. Economic entity assumption.
Questions:
Recognize by number accounting assumption or principle which is described below. Don't use a number more than once.
a) Is rationale for why plant assets are not reported at liquidation value. (Note: Don't use cost principle.)
b) Points out that personal and business record-keeping should be separately maintained.
c) Suppose that dollar is the "measuring stick" used to report on financial performance.
d) Separates financial information into time periods for reporting purpose.
e) Indicates that companies must not record in accounts market value changes subsequent to purchase.
f) Dictates that companies must disclose all circumstances and events which make a difference to financial statement users.