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Acg3024 Underlying Assumptions Or Concepts Of Accounting

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Finance
School
Valencia College
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Homework
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Assumptions or Concepts of Accounting
Student`s Name
Institution
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Assumptions or Concepts of Accounting
One of the assumptions or concepts of accounting is a business entity that believes that
there should be a clear differentiation between the business and its owners or any other party
associated with the business. The second assumption or concept of accounting is the going
concern (continuity) assumption emphasizes that an entity should continue operating not unless
there is a piece of strong evidence that supports its termination. The third assumption or concept
of accounting is money measurement which normally includes monetary units in performing any
measurement rather than using physical units. The fourth assumption or concept of accounting is
the stable dollar assumption which normally uses the dollar as the unit of measurement because
it is considered among the most stable units globally (Hermanson et al., 2011). Therefore, it
means the financial statements are not expected to change the initial value of the dollar used
within any inventory process. The last assumption of accounting is the periodicity (periods)
assumption which provides the accountants with an opportunity of subdividing the life of a
specific entity into smaller durations which plays a significant role in presenting an accurate
report on the economic activities.

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1 Assumptions or Concepts of Accounting Student`s Name Institution Course Instructor Date 2 Assumptions or Concepts of Accounting One of the assumptions or concepts of accounting is a business entity that believes that there should be a clear differentiation between the business and its owners or any other party associated with the business. The second assumption or concept of accounting is the going concern (continuity) assumption emphasizes that an entity should continue operating not unless there is a piece of strong evidence that supports its termination. The third assumption or concept of accounting is money measurement which normally includes monetary units in performing any measurement rather than using physical units. The fourth assumption or concept of accounting is the stable dollar assumption which normally uses the dollar as the unit of measurement because it is considere ...
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