TRUE OR FALSE
1. The assumption that a business entity will not cease its operations in the near future refers to the concept of Consistency.
2. Using the same accounting treatment for identical items from one period to another is an application of the concept of Time period.
3. Under the accrual basis of accounting, income is recognized when earned, not when cash is collected, and expense are recognized when incurred, not when cash is disbursed.
4. A reporting period that starts on May 1 of the current year and ends on April 30 of the following year is called a fiscal year period.
5. Qualitative characteristics are the traits that determine whether an item of information is useful to users, and therefore included in the financial statements.
1. The assumption that a business entity will not cease its operations in the near future refers to the concept of Consistency.
2. Using the same accounting treatment for identical items from one period to another is an application of the concept of Time period.
3. Under the accrual basis of accounting, income is recognized when earned, not when cash is collected, and expense are recognized when incurred, not when cash is disbursed.
4. A reporting period that starts on May 1 of the current year and ends on April 30 of the following year is called a fiscal year period.
5. Qualitative characteristics are the traits that determine whether an item of information is useful to users, and therefore included in the financial statements.
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1.true
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Answer:
1.true
2.false
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