Question

The specific unit or organization for which accounting information is accumulated and reported is called the __________. The basis for valuation of assets in accounting is __________. The __________ concept in accounting refers to the fact that the amounts entered in an accounting system are the objective money prices determined in the exchange process. If expenses for a period exceed revenues for the same period, the entity is deemed to have suffered a __________ __________. An income statement is prepared for a __________, while a balance sheet is prepared as of a __________. Under the __________-__________ concept, the accountant assumes that a business will continue more of less indefinitely. The __________ __________ is equal to stockholders' equity divided by __________ __________. The __________ __________ __________ __________ shows the cash inflows and cash outflows for a period of time.

Answer 1

1) entity

Explanation: The specific organization/ units for which information of accounting is accumulated and reported is termed to be entity

2) cost

Explanation: The cost is the basis for valuation of assets

3) cost

Explanation: Concept of cost refers to the fact that the amounts booked in system of accounting are the objective money prices as determined in the process of exchange.

4) net loss

Explanation: When expenditure is higher than revenue for the same period, then a business suffers net loss

5) period and 6) date

Explanation: The income statement will be prepared for period; and a balance sheet will be prepared as on a date.

7) going

Explanation: The concept, of going concern assumes that an entity will continue more of less indefinitely.

8) equity ratio and 9) total equities

Explanation: The equity ratio is computed as stockholders' equity divided by total equities