Question

95% Edit View History Bookmarks People Tab Window Help Ch 04 Graded Homework Ass X » NWP Assessment Player UI ADI X > Learning Personalised - Dash X + ssment education.wiley.com/was/ui/V2/assessment-player/index.html launchid-902034e-296a-488-0c3-253b0bBedbe/question/ YouTube Maps Homework Assignment Question 2 of 5 > -11 Identify the accounting concept that describes each situation below. Do not use any concept more than once. (a) (b) (c) Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Indicates that personal and business recordkeeping should be separately maintained. Ensures that all relevant financial information is reported. Assumes that the dollar is the measuring stick used to report on financial performance. Requires that accounting standards be followed for all items of significant size. Separates financial information into time periods for reporting purposes. Requires recognition of expenses in the same period as related revenues. Indicates that fair value changes subsequent to purchase are not recorded in the Materiality Expense recognition principle Revenue recognition principle Economic antity assumption Full disclosure principle Going concern assumption Monetary unit assumption Cost constraint Periodicity assumption Historical cost principle (d) le) (1) le) (h) accounts. 24 WPX PXO MacBook DOG 80 888 A # 3 $ 4 % 5 & 7 ÖN 1 0 6 8 9 E R. T Y U 1 0

Answer 1

Answers to the above questions will be as follows;

(a) Going concern assumption is the rationale for why plant assets are not reported at liquidation value.

(b) Economic entity assumption indicates that personal and business recordkeeping should be done separately maintained.

(c) Full disclosure principle ensures that all relevant financial information is reported.

(d) Monetary unit assumption assumes that the dollar is the "measuring stick" used to report on financial performance.

(e) Materiality requires that Accounting Standards be followed for all items of significant size.

(f) Periodicity assumption separates Financial Information into time periods for reporting purposes.

(g) Expenses recognition principle requires recognition of expenses in the same period as relevant revenues.

(h) Historical cost principle indicates that fair value changes subsequent to purchase are not recorded in the accounts.