Which one of the following answers explain the prudence and business entity concepts the best? O...
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Which one of the following answers explain the prudence and business entity concepts the best? O Prudence - revenue and income should be anticipated; therefore any unearned income should be shown in the accounts | Business entity Only those transactions which can be expressed in terms of money should be recorded for accounting. O Prudence - revenue and income should not be anticipated therefore any unearned income should not be shown in the accounts. | Business entity The 'Business' and 'owner' are taken as two separate entities Prudence - all known expenses and liabilities must be taken into account when preparing accounts, whether the amount is known with certainty or it has been estimated. | Business entity - Only those transactions which can be expressed in terms of money should be recorded for accounting. Prudence income should be recognised when it is earned rather than when cash is received. | Business entity - when preparing accounts the company must assume that there is no intention or need to go into liquidation or to curtail significantly the current level of business operations. Which one of the following answers explain the prudence and business entity concepts the best? O Prudence - revenue and income should be anticipated; therefore any unearned income should be shown in the accounts | Business entity Only those transactions which can be expressed in terms of money should be recorded for accounting. O Prudence - revenue and income should not be anticipated therefore any unearned income should not be shown in the accounts. | Business entity The 'Business' and 'owner' are taken as two separate entities Prudence - all known expenses and liabilities must be taken into account when preparing accounts, whether the amount is known with certainty or it has been estimated. | Business entity - Only those transactions which can be expressed in terms of money should be recorded for accounting. Prudence income should be recognised when it is earned rather than when cash is received. | Business entity - when preparing accounts the company must assume that there is no intention or need to go into liquidation or to curtail significantly the current level of business operations.
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ANSWER Prudence Revenue and income should not be anticipated therefore any unearned income should no... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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