Which accounting concept does the comment below refer to? Assets are normally sh

Question

Which accounting concept does the comment below refer to?

Assets are normally shown at cost price in the balance sheet, and the cost is the basis for all subsequent accounting for the asset.

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Which accounting concept does the comment below refer to?

Profit is the difference between revenue and expenses not cash received and paid. Expenses are matched to revenues.

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Which accounting assumption does the comment below refer to?

For accounting purposes the business is treated as a separate entity from the owner. The accounting records show transactions of the business not the owner.

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Which accounting concept does the comment below refer to?

Profit is earned (realized) at the time the goods or services are passed to the customer and the customer incurs liability for them.

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The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

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Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

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A company borrowed $100,000 on December 1, 2010 and will make its only payment for interest when the note is paid off on June 1, 2011. The total interest for the six months will be $3,600. On the December 2010 income statement the accountant reported Interest Expense of $600. This action was the result of which accounting principle/guideline?

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Explanation / Answer

Which accounting concept does the comment below refer to?

Assets are normally shown at cost price in the balance sheet, and the cost is the basis for all subsequent accounting for the asset - Historical cost accounting concept

Which accounting concept does the comment below refer to?

Profit is the difference between revenue and expenses not cash received and paid. Expenses are matched to revenues - matching accounting concept

Which accounting assumption does the comment below refer to?

For accounting purposes the business is treated as a separate entity from the owner. The accounting records show transactions of the business not the owner - Business entity accounting assumption

Which accounting concept does the comment below refer to?

Profit is earned (realized) at the time the goods or services are passed to the customer and the customer incurs liability for them- Revenue realisation accounting concept

The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline - Economic entity

Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements? Full disclosure

A company borrowed $100,000 on December 1, 2010 and will make its only payment for interest when the note is paid off on June 1, 2011. The total interest for the six months will be $3,600. On the December 2010 income statement the accountant reported Interest Expense of $600. This action was the result of which accounting principle/guideline? Matching concept

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