Acccob1 Accounting Principles Questions Fully Solved 2023

Time Period or Periodicity Concept {Ans: States that recent accounting information is highly desirable since information that is presented is nearly accurate. It protects the users of accounting information from basing their decisions on outdated information. Interim Period - Accounting period that is shorter than 1 year Calendar Year - January 1 to December 31 Fiscal Year - !2 month duration that starts at any month other than January Natural Business Year - Length of the fiscal year is determined by the nature of business}IASB {Ans: International Accounting Standards Board. They actively develop and issue accounting standards that will to be followed internationally. Its purpose is to narrow down the differences in the world when preparing a financial statement.}Cost-benefit Principle {Ans: An individual (or a firm or a society) should take an action if, and only if, the extra benefits from taking the action are at least as great as the extra costs.}Neutrality {Ans: Presenting the information in an objective manner.}Materiality Concept {Ans: If an omission or misstatement could influence the economic decisions of users then information is material. This emphasizes the significance of the transactions, balances and errors made in the financial statements.}Modifying Constraints