Reference no: EM132763263

Problem 1: If an owner takes goods from the inventory for personal use, which of the following accounting concepts should be considered?

a) Prudence
b) Going concern concept
c) Money measurement
d) Separate entity concept

Problem 2: This concept assumes that a business will continue to operate in the foreseeable future. Hence, the financial statements should be prepared on a _____ basis unless management either intends to liquidate the enterprise or to cease trading, or has no realistic alternative but to do so. Which of the following accounting concept describes the above?

a) Matching concept
b) Realization concept
c) Going concern concept
d) Historical cost concept