Assignment 11

 How can we explain the concept of "ACCRUAL BASIS"?




Under this basis, the effects of transactions and other events are recognized when they occur (and not as cash or its equivalent is received or paid) and we are recorded in the accounting records and reported in the financial statements of the periods to which they related.



 What is the mean of the concept of "GOING CONCERN"?



The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for the foreseeable future.Hence,it is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operation.



 Can you give an example for "FAITHFUL REPRESENTATION"?



For an example, a balance sheet should represent faithfully the transactions and other events that result in assets, liabilities and equity of the entity at the reporting date which meet the recognition criteria. http://lahirumanagement.tk/, Carter De Costa & Company