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Question 1: Identify the accounting concept or principle involved in each case.
Question 2: Determine whether the accounting concept is violated or applied. Choose Applied if the accounting concept is applied otherwise choose Violated.
BASIC ACCOUNTING CONCEPTS ARE:
Separate Entity Concept
Historical Cost Concept
Going Concern Assumption
Matching Principle
Accrual Basis of Accounting
Prudence (or conservatism)
Time Period
Stable Monetary Unit
Materiality Concept
Cost - benefit (Cost Constraint)
Full disclosure
Consistency Concept
Foundations of Accounting Assignment - The University of Texas at Austin McCombs School of Business - USA. Prepare an income statement
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