The key accounting assumptions

Topic

The key accounting assumptions

Instructions

Read pages 44-65.

Consider the following as you read:

• What are the key accounting assumptions identified in this chapter?

Answer preview

Important information is presented in the chapter concerning core accounting assumptions recognized by Federal Accounting Standard Board. The four accounting assumptions include periodicity assumption, economic entity assumption, monetary unit assumption, and going concern assumption. Periodicity assumption is the aspect of accounting that includes setting of guideline to enable proper division of ongoing, complex business activities within periods, such as monthly, quarterly, yearly, among other created periods. Fundamentally, the precisely covered time period  is represented in financial statements.

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