Matching Pairs DiBIT_U6_ W14_Activity 1Online version DiBIT_U6_ W14_Activity 1 by Educaplay 2 1 Periodic concept 2 Prudence concept 3 Revenue recognition concept 4 Accrual concept 5 Money measurement concept 6 Matching concept 7 Accounting entity concept 8 Going concern concept Relevant income and expenditure for the period should be recognized irrespective of their receipts and payments in cash Financial Statements of a business is prepared based on the assumption that the business would continue its operations for a foreseeable future Revenue should not be overstated and expenses should not be understated Total expenses incurred during the period should be matched against the total revenue recognized in that period Consider the business enterprise and owners are two separate independent entities for accounting purpose Only business transactions and events that can be measured in terms of money are recognized and recorded Divide the life time of the business into periods such as monthly, quarterly, annually and prepare the financial statement for each period Income should not be recognized except when it is realized
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