Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
I cannot write the entire essay for you, but here are some differences:
Command Economy: production and prices are controlled by the government
In a free market, consumers' demand determine what is/should be made and how much to charge.
Answer:
"Inflation" implies that pressure for price increases reaches across "most" markets, not just one.
Answer:
<em>Naomi experiences Frictional Unemployment due her movement to a new city.</em>
Explanation:
Although Naomi has a degree in a field that is experiencing a great deal of growth, her movement causes her to remain unemployed, not because she has no skill but because of the difference in the job and worker demand and supply between these two places, that is characteristic of frictional unemployment. <em>Frictional unemployment is a type of unemployment that is based on the unemployed person's circumstances</em>. It can be <em>as a result of the person trying to find a better job or as a result of the person moving from an old place to a new place</em>. This type of unemployment exists because jobs and workers have their differences, creating a type of mismatch between the supply and demand of jobs and workers.
Couldn't read material clearly
