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ozzi
3 years ago
14

Identify which accounting principle or assumption best describes each of the following

Business
1 answer:
ehidna [41]3 years ago
7 0

Answer:

A) Accrual principle

B) Cost principle

C) Economic entity principle

Explanation:

Accrual principle: indicates that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them.

Cost principle: according to this concept, a business should only record its assets, liabilities, and equity investments at their original purchase costs.  

Economic entity principle: implies that the transactions of a business should be kept separate from those of its owners and other businesses.

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