Question

can you guys please help me to continue this. the other option are

- continuinity (going-concern) assumption

- entity assumption

- historical cost principle

- Revenue principle

- Stable -monetary -unit assumption

- time period concept

Homework: Ch3 Preassignment Score: 0.8 of 4 pts % 53-5 (book/static) 2 of 5 (5 complete) Identify the accounting concept or principle that gives the most direction on how to account for each of the following situations i (Click the icon to view the situations) * More Info - X a. Accounting Concept or Principle Expense recognition principle Time period concept a. A utility bill is received on December 27 and will be paid next year. When should the company record utility expense? b. A physician performs a surgical operation and bills the patient's insurance company It may take three months to collect from the insurance company Should the physician record revenue now or wait until cash is collected? c. March has been a particularly slow month, and the business will have a net loss for the second quarter of the year Management is considering not following its customary practice of reporting quarterly carings to the public d. Salary expense of $48 000 is accrued at the end of the period to measure income property e. A construction company is building a highway system which will take four years When should the company record the revenue it ears? Print Done Choose from any drop-down list and then click Check Answer 3 parts remaining Clear All Type here to search ot9 e é

Answer 1

Explanation
Going concern and time period concept is used for the purpose of Recognisation of expenses.
The most of the direction given while accounting expenses are based on these two concepts.

1. Going concern assumption: This principle states that the organisation will continue its business on perpetual basis for foreseable future. The entity will never liquidate its assets.Most of the accounts are based on this assumption.
2. Time period concept: Although the entity carries its business for a foreseeable future but the accounts has to be closed and reopened on standard time period which can be monthly, quarterly, or annually.This concept is used to present financial statements to stakeholders for limited time and to prevent errors and frauds within the accounts.