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Scrat [10]
3 years ago
7

Identify the accounting assumption or principle that is described below.

Business
1 answer:
Inga [223]3 years ago
7 0

Answer and Explanation:

a. Going Concern Assumption  : It means the organization would be remain open always whether the people go or not

b. Economic Entity Assumption

: The owner and the business records should be maintained separately.

c. Monetary Unit Assumption

: It means all the transactions should be recorded in monetary terms

d. Periodicity Assumption

: It means for a period of time different financial information could be recorded

e. Historical Cost Principle  : Always used the orginial cost at the time of recording

f. Full Disclosure Principle: All information should be disclosed to the notes to the financial statements

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For higher levels of management, responsibility accounting reports<u> are more summarised than for lower levels of management.</u>

It is a summarised report facilitating the higher levels of management in order to keep a track of performance of low level management.

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