FIN611 MIDTERM SOLVED PAPERS
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Advance Financial Accounting:
These accounting principles allow for comparability between different businesses and the operating performance of the same business over many years. iii) Going concern assumption: The concept of “going concerned” in accounting is the assumption that the business will continue to exist for the foreseeable future. v) Principle of stable currency.
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FIN611 MIDTERM PAST PAPERS BY MOAAZ:
These provide reliability. Financial Statements. Below are some of the generally accepted accounting principles:
Principle of entity/principle of separate entity: According to this principle, a business is judged as a separate entity from the owner.
FIN611 MIDTERM SOLVED PAPERS:
For example, money received as a reward by a person has no effect on the books of accounts because it is not a business transaction. ii) Cost principle: according to this principle, the asset in the balance sheet t is accounted for on the basis its nominal or original cost when the company acquired it.
FIN611 MIDTERM SOLVED PAPERS BY MOAAZ:
This assumption is also closely related to the cost principle because without the concept of “going concerned” accountants would have to record all current assets price instead of historical costs. iv) The principle of objectivity: clear, factual bases for property valuation; transaction measurement objectively.
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